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SBI waives closure charges for savings accounts that are over 1 year old SBI may cut minimum balance requirement to Rs 1,000 in urban areas SBI cuts minimum balance requirement in savings account to Rs 3,000 SBI net profit down 38% on higher provisioning Letters: State Bank of India's minimum balance penalty is an unfair move -
SBI on Tuesday said that it has reduced the penalty for non maintenance of the stipulated average minimum balance (AMB) in a customer's account. The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month to Rs 15, excluding GST. Similarly, the charges for semi-urban and rural centres have been revised from Rs 40 to Rs 12 and Rs 10 respectively. The bank, in a press release, said the cut in fines will benefit 250 million account holders out of its 410 million savings account holders. The breakdown of previous and new charges are as follows:
SBI made Rs 18 bn on charges The largest Indian bank suffered a huge backlash last December when finance ministry data revealed that it netted a windfall of Rs 17.72 billion, more than its second-quarter profit, from customers for non-maintenance of monthly average balance in savings accounts in eight months of 2017-18. While SBI's current Rs 3,000 minimum balance requirement for urban areas is highest among all PSBs, it is the lowest compared to all large private banks. State Bank of India has close to 405 million savings account customers. SBI, after a gap of six years, had reintroduced the monthly average balance (MAB) charges from April 1, 2017. After criticism by customers, it reduced those charges with effect from October 1, 2017. Metro & Urban (AMB Rs. 3000/-) Existing Charges per month Proposed Charges per month Shortfall < = 50% Rs 30/- +GST Rs 10/- +GST Shortfall > 50 – 75% Rs 40/- +GST Rs 12/- +GST Shortfall > 75% Rs 50/- +GST Rs 15/- +GST Semi-Urban (AMB Rs. 2000/-) Shortfall < = 50% Rs 20/- +GST Rs 7.50 +GST Shortfall > 50 – 75% Rs 30/- +GST Rs 10.00 +GST Shortfall > 75% Rs 40/- +GST Rs.12.00+GST Rural (AMB Rs. 1,000/-) Shortfall < = 50% Rs 20/- +GST Rs 5.00 +GST Shortfall > 50 – 75% Rs 30/- +GST Rs 7.50 +GST Shortfall > 75% Rs 40/- +GST Rs 10.00 +GST
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