New Delhi : State Bank of India has reduced the minimum monthly average balance (MAB) from Rs 5000 to Rs 3000 in the Saving Bank Account. With this proposal, the country’s largest bank has given the reason to make a happy Diwali to its middle class customers who are not efficient to maintain this 5,000 average monthly balance. The bank also said that the charges will be applicable from October.
This largest public sector bank has exempted pensioners, government beneficiaries of Social Benefit Services and minor account holders (Minors) for the minimum balance in the savings account.
SBI has increased charges in April
In April 2017, SBI revised minimum monthly balance (renewal balance) and charges after 5 years. The minimum balance for metro city was fixed to Rs. 5,000 while for urban and semi urban area branches was kept at Rs. 3,000 and Rs. 2,000 respectively. Rs. 1,000 to maintain for rural area branches. Now the bank has decided to keep metro and urban area branches in one category. That means now the limit for metro cities branches will be applicable at Rs. 3,000, same as urban areas.
SBI reduces penalties
The Banking Sector Director, Rajneesh Kumar said last week that the penalty for the account holders not maintaining their average monthly balance has also been reduced. The bank reduced the penalty amount by 20 to 50 percent. And for semi-urban and rural areas, this penalty amount will be in range of 20 to 40 rupees.
So far, the metropolitan branches was collecting Rs. 100 for accounts not maintaining their average balance less than 25% and GST was being levied on it. If minimum balance comes to 50% or less, then for this, a penalty of 50 rupees was being levied with GST.
At the same time, with minimum balance in the rural areas, the penalty of GST was being levied with Rs 20 and 50 rupees. SBI has clarified that there will be no need to keep the minimum amount in Basic Savings Accounts and Prime Minister JanDhan Yojna. The number of bank savings accounts is 42 million. Out of this, 13 crore accounts fall into this category.
In fact, for a long term, the minimum balance amount of SBI was being questioned because it was so high and there was pressure on the bank to cut it a little bit. Today, with this announcement, SBI has definitely given a big relief to its account holders.