Tuesday, 25 September, 2018

SBI Decreases Charges up to 75% For Not Maintaining of Minimum Balance

State Bank of India has retained the amount that has to be maintained as average monthly balance State Bank of India has retained the amount that has to be maintained as average monthly balance
Nellie Chapman | 13 March, 2018, 22:36

The bank also clarified that customers always have the option of converting the regular savings bank account to Basic Savings Bank Account (BSBD account), free of charge, in case they desire to avail basic savings bank facilities without being subject to maintenance of AMB. The revised charges will be effective from April 01, 2018 and will benefit more than 25 crore customers.

The charges for non-maintenance of AMB for clients in Metro and Urban centers have been diminished from a greatest of Rs 50 every month to Rs 15 every month. For semi-urban and rural centres, the penalty has been reduced from Rs 40 to Rs 12 a month.

Nearly, 25 crore bank customers will be getting the benefit of this order.

For urban and metro customers average monthly balance is of Rs 3,000 per month. The move had invited widespread criticism. In addition, Rs 10 GST charges will be applicable over and above the specified rates.

It slashed service charges for non-maintenance of AMB by 20-50%.

According to release, for semi-urban centres, the charges have been reduced from Rs 40 to Rs 12 per month plus GST and for rural centres. The SBI said that the step was taken following a feedback from various stakeholders.

The finance ministry data showed the bank charged Rs 1,771.67 crore from customers on account of non-maintenance of minimum average balance between April and November 2017. On the other hand, if we talk about rural areas, you have to maintain a balance of 1000 rupees in your account as a minimum balance.

SBI reestablished (AMB) charges from April 2017, following a hole of 6 years and afterward amended it downwards in October after input from partners. Within a particular category, the bank levies charges depending on the shortfall. The Bank has an exceptionally solid store establishment having 41 crores Savings Bank accounts out of which 16 crore accounts under PMJDY/BSBD and of beneficiary/minors/standardized savings advantage holders were at that point exempted. Besides, students aged below 21 years are also not required to maintain minimum balance. The amount was also almost half of the Rs 3,586 crore the bank earned as net profit from April to September.