SBI reduced minimum balance limit for savings account, effective on April 1

SBI reduced minimum balance limit for savings account, effective on April 1

The country's largest lender, State Bank of India (SBI) has slashed charges for non-maintenance of Average Monthly Balance (AMB) in savings accounts by almost 75 per cent.

Last April, the nation's largest lender had re-introduced the penal charges on non-maintenance of average monthly balance, after a gap of five years.

In semi-urban and rural centres the charges have been trimmed from Rs 40 per month plus GST to Rs 12 and Rs 10 per month plus GST, respectively. The revised charges for non-maintenance of minimum balance in metro and urban centres have been reduced to Rs 15 per month plus GST from a maximum of Rs 50 per month plus GST.

Retail & Digital Banking, SBI said, "We have reduced these charges taking into account the feedback and sentiments of our customers".

Between April 2017 and November 2017, SBI had collected Rs1,771.67 crore from customers on account of non-maintenance of AMB, according to a response that the Ministry of Finance gave in Lok Sabha in February 2018 (read it here).

Unhappy With Himself, Kagiso Rabada Promises to Learn from Mistake
It took Rabada's points accumulation to eight over a 24-month period, leading to an automatic and immediate suspension. A level-one offence carries a punishment of one or two demerit points and a fine of up to half of his match fee.

SBI claims the reduction is expected to benefit 250 million customers.

Shifting to BSBD account is even more convenient and flexible, because there is no charges levied by SBI on them. SBI had earlier said, "On an average balance of Rs 3,000 in the metro, SBI earns Rs 6 only per month, whereas for a minimum balance of Rs 1,000 in rural, bank earns Rs 2 per month which is meagre when compared to the services offered". These accounts are already exempted from charges on non- maintenance of minimum balance. This penalty was conveyed down to Rs 30-50. These charges are between Rs20 and Rs40 in semi-urban and rural branches.

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. Exempted accounts are those related to Pradhan Mantri Jan Dhan Yojana, basic savings bank deposit account, and accounts of pensioners and minors, among others. My outgo on the ATM card itself is Rs 1,500 crore annually.

AMB charges are levied by private banks too.

Related Articles

  • CBC's afternoon coverage of the 2018 Paralympics in Pyeongchang

    CBC's afternoon coverage of the 2018 Paralympics in Pyeongchang

    This is the largest Winter Paralympics ever, with 567 athletes from 48 countries plus a team of neutral Paralympic athletes from Russian Federation .
    Bears to sign WR Allen Robinson

    Bears to sign WR Allen Robinson

    That leaves just seven wide receivers who finished outside the "startable" range in leagues that start three wide receivers. Looking back over the last five years, there have been 119 wide receivers who have seen at least 115 targets in a season.
    Rain & Snow Early, Slowly Clearing Skies Tomorrow

    Rain & Snow Early, Slowly Clearing Skies Tomorrow

    Thursday is the chilliest morning of the week, inland frost is possible with overnight lows in the mid 30s. Those chances for snow showers continue through the evening and into early Wednesday before tapering off.
  • Rapper Craig Mack dies, age 46

    Rapper Craig Mack dies, age 46

    Rapper Craig Mack best remembered for his 1994 hit Flava In Your Ear died at age 46 of heart failure on Monday night. He was filmed decrying his former life as "wickedness", but did release an album in 2017, The Mack World Sessions .
    $470 billion trade war looms over OECD's optimistic global outlook

    $470 billion trade war looms over OECD's optimistic global outlook

    The OECD blamed the UK's position on high inflation dampening consumer demand and continued uncertainty about Brexit. The Paris-based organization had expected growth to be 1.2 percent in 2018 and 1.0 percent in 2019.
    Tata Sons to sell TCS stake worth $1.25 billion to pay debt

    Tata Sons to sell TCS stake worth $1.25 billion to pay debt

    Tata Sons is reportedly planning to use the proceeds to pay debts of units Tata Teleservices and Tata Teleservices Maharashtra. The company was planning to sell the shares at Rs 2,872 to Rs 2,925 rupees a share, the terms show.
  • Martial fit for Sevilla clash: Mourinho

    Martial fit for Sevilla clash: Mourinho

    Here Press Association Sport details some of the talking points ahead of Tuesday night's game. It was no different for him against Liverpool, although he was taken off only in injury time.
    U.S.  notes Taliban 'interest' in peace talks

    U.S. notes Taliban 'interest' in peace talks

    The president also said the government will provide passports for Taliban members and their families, along with office space in Kabul.
    Katy Perry floors American Idol contestant with impromptu kiss

    Katy Perry floors American Idol contestant with impromptu kiss

    After identifying her correctly against the five strangers, Katy excitedly said: "Oh my God, stop I know who this is!" Missing on Sunday's episode was Ryan Seacrest , who used to have countless appearances in every episode .
  • MU seeded eighth, matched up with Florida State in Nashville

    MU seeded eighth, matched up with Florida State in Nashville

    The Seminoles' season was one of close wins and close losses, but they're not heading into the NCAA Tournament with much momentum. They will play Florida State in Nashville on Friday with the victor of that likely facing one seeded Xavier.
    Salma Hayek Is Not Thrilled with the Frida Kahlo Barbie, Either

    Salma Hayek Is Not Thrilled with the Frida Kahlo Barbie, Either

    Salma posted an image of the doll to her Instagram and wrote: '#fridakahlo never tried to be or look like anyone else . But Kahlo's family soon issued a statement objecting to the doll.
    Belarus wins its sixth medal at Winter Paralympics in PyeongChang

    Belarus wins its sixth medal at Winter Paralympics in PyeongChang

    This takes New Zealand to two medals overall, following Corey Peters' bronze on Saturday in the Men's Downhill Sitting event. To win a medal in the Super Combined, you must set a combined fastest time across both Part 1, Super-G and Part 2, Slalom.