The country's largest lender State Bank of India has affected some changes to the monthly average minimum account balance (MAB) rules. The rules that were put in place in April had given rise much resentment among the customers and general public. It was after a gap of five year, the bank re-introduced MAB and charges for non-maintenance of balance.
The revised MAB requirement and charges will become applicable from October.
Find out the latest changes in the rules below
1) Cut in MAB: The bank has decided to treat the metro and urban centres in the same category as far as average minimum account balance maintenance is concerned. What this means is that the MAB in metro centres has been reduced to Rs 3,000 from Rs 5,000 earlier. For semi-urban branches, the MAB is Rs 2,000 and for rural branches Rs 1,000. So in case you are in metro centres, now you need to maintain the average MAB at Rs 3,000.
2) Cut penalties for non-adherence: For non-maintenance of MAB, the charges have also been revised downwards ranging from 20-50 percent across all population groups and categories. Now, the charges at semi-urban and rural centres range from Rs 20 to Rs 40 and at urban and metro centres from Rs 30 to Rs 50, the bank has said. Earlier, in the metros, the bank was charging Rs 100 plus GST if the balance fell below 75 percent of the MAB of Rs 5,000. If the shortfall was 50 percent or less, the penalty charge was Rs 50 plus GST. Any shortfall in maintaining minimum average balance in rural areas was attracting a penalty in the range of Rs 20 to Rs 50 plus GST.
3) Categories exempted: The bank has decided to exempt pensioners, beneficiaries of social benefits from the government and minors from the requirement of minimum balance in savings account. The bank reiterated that basic savings bank deposit and PMs Jan-Dhan accounts are not required to maintain the minimum balance.
4) About 5 crore to benefit: SBI has 42 crore savings bank accounts. Of this, 13 crore come under PMJDY/ BSBD. The revision is likely to benefit another 5 crore account holders, the bank has said.
(With input from agencies)
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Updated Date: Sep 26, 2017 14:19:02 IST