SBI reduces charges on non-maintenance of minimum balance by 75%

SBI slashes non-maintenance charges of minimum balance by 75 per cent

SBI slashes minimum balance non-maintenance fines by up to 75%

The decision comes in view of the feedback from the various users. Earlier the charges were Rs 50 per month plus GST.

For semi-urban and rural centres, the charges have been reduced from Rs 40 per month plus GST to Rs 12 & Rs 10 per month plus GST, respectively. It requires savings accounts to maintain a minimum average monthly balance of Rs 3,000 in metropolitan areas, Rs 2,000 in semi-urban areas and Rs 1,000 in rural areas.

On the reduction of these charges, PK Gupta, MD - Retail and Digital Banking, SBI said, "We have reduced these charges taking into account the feedbacks and sentiments of our customers".

In a move that will benefit 25 crore customers of the bank, SBI reduced charges for non-maintenance of average minimum balance by upto 75 per cent. The sum was more than SBI's July-September quarter net benefit of Rs 1,581.55 crore and nearly 50% of the Rs 3,586 crore it earned as net benefit April-September.

If you have been upset about the charges imposed by public-sector banks for various reasons including non-maintenance of minimum balance, there is some relief.

The bank excludes Jan Dhan accounts, basic savings bank deposits (BSBD) accounts, pensioners, beneficiaries of social benefits from the government and accounts of minors from the MAB requirement. The charges at semi-urban and provincial centers were also updated to Rs 20-40 from Rs 25-75.

As The Wire has reported, during April-November 2017, SBI collected Rs 1,771 crore in penal charges from its customers, which was more than its net profit of Rs 1,581.55 crore for the same period. SBI had brought back this requirement for its savings accounts in April 2017, after a gap of 6 years.

The Bank has a very strong deposit franchise having 41 crores Savings Bank accounts out of which 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted. The bank had subsequently lowered the AMB, following criticism from the customers. Besides, students aged below 21 years are also not required to maintain minimum balance. My outgo on the ATM card itself is Rs 1,500 crore annually.

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