SBI slashes minimum balance charges, here's how much you will pay now

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From April 1, the State Bank of India will reduce its penalties for not maintaining a minimum balance by up to Rs 35 per month for metro centres and up to Rs 30 per month for rural branches.

In a move that will benefit 25 crore customers of the bank, SBI reduced charges for non-maintenance of average minimum balance by upto 75 per cent.

Now, The charges for non-maintenance of AMB customers in Metro cities (Mumbai, Delhi, Kolkata) and Urban centres have been reduced from 50Rs per month to 15Rs per month.

For semi-urban and rural centres, the charges have been reduced from Rs 40 per month plus GST to Rs 12 & Rs 10 per month plus GST, respectively. The AMB for accounts from metro areas was set at Rs5,000 and those from urban areas at Rs3,000. In the municipal corporation a fine of Rs. 50 GST tax is Rs. Rs 65 will be charged and in the municipal area Rs. 52 will be charged.

This choice takes extreme feedback that the bank earned strong pay of Rs 1,771 crore in only 8 months from contributors who neglected to keep up the balance in their bank accounts.

Public sector banks (PSBs) are reeling under bad loans.

SBI has 41 crores Savings Bank accounts out of which 16 crore accounts are either under Pradhan Mantri Jan Dhan Yojana or are basic savings bank accounts. Besides pensioner/minors/social security benefit holders accounts were already exempted. However, the minimum amount to be maintained in the account remains the same.

Interestingly, while SBI provided relief to customers in regards to AMB in savings account, it also encouraged customers for shifting towards Bank Saving Bank Deposit (BSBD) account.

In this case, the SBI Bank has replaced the penalty again.

However, it needs to be noted that, the customer can not have any other Savings Bank Account, if he/she has a BSBD Account. The decision will benefit over 25 crore customers. Besides, it has unveiled a Rs 2.11 lakh crore recapitalisation plan.

He said there are more than 14 crore BSBD accounts, where the bank don't charge anything and the It also handles 40 percent of the financial inclusion accounts. "But it can't work this way that everything comes free", Kumar said.

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