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SBI waives off account closure fee: After new minimum balance rules, it is a good move for customer

Imagine this: You are traveling in the first-class compartment of the train. The ticket collector asks for your ticket, but you have a second-class ticket. The TC will invariably ask you to either pay the difference and continue to travel first class or, simply move to the second class. The TC is making it absolutely clear that if you are not willing to pay up you better downgrade.



This  is what State Bank of India is doing too. The country's largest lender after reviving its minimum account balance rules, has not waived off the fee it charges for closure of an account, provided it has been in existence for over a year. So if you cannot conform to minimum account  balance rules, move from a regular savings account to a Jan Dhan account or basic savings bank deposit account (BSBD). Previously the bank was charging Rs 500 and GST for account closures.

The following four kinds accounts will not be charged a waiver:

1) Those which are in the free lookup period of up to 14 days after opening.

2) Those that were opened at least a year earlier.

3) Accounts of deceased depositor.

4) Regular BSBD (Jan Dhan) accounts.

Keep in mind that if your account is more than 14 day but less than one year old, you will have to pay an account closing fee of Rs 500 and GST.

According to a report in The Times of India, the decision to waive off closure fee will make it easier for customers who can't afford a minimum balance to close the account. And, also help such customers to switch from a regular savings account to BSBD or Jan Dhan accounts. These accounts do not come under the minimum account balance rules. Such accounts are a basic account with a RuPay debit card and no cheque book.

In short, SBI is saying, either maintain the required minimum balance or switch to a BSBD.

In fact, you should use this opportunity to close your idle accounts. ideally, you should not have more than two bank accounts - a salary/savings account or inflow account and an outflow account from where you make your investments/loan repayments.

If you have more than two savings accounts in SBI, you can close them without paying the closure fee.

Updated Date: Oct 03, 2017 14:11 PM

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