SBI slashes minimum balance non-maintenance fines by up to 75%

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SBI had earlier defended the charging of penalties, saying that it was meagre compared to services it provided.

SBI, the country's largest bank, has made a huge reduction in penalties for not maintaining Average Monthly Balance (AMB) in Savings Account.

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. Similarly for Semi-Urban and Rural centres, the charges have been reduced from Rs 40 every month to Rs 12 and Rs 10 GST charges will be applicable over and above the rates specified above.

P.K. Gupta, managing director, retail and digital banking at SBI, said the bank has reduced the charges on the basis of customer feedback.

For instance, ICICI Bank and HDFC Bank have a minimum monthly average balance requirement of Rs 10,000 for a regular savings accounts in the metros and urban locations.

AMB is calculated by taking into account the balance maintained in an account on all the days of the month. The move had invited widespread criticism. The above revision in AMB will benefit 25 crore customers.

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Furthermore, there is nil minimum balance amount in BSBD account, also there is no upper limit set for maintaining maximum balance.

Of the 41 crore savings accounts with SBI, 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted from the feature.

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

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.

As on September 30, 2017, SBI has a deposit base of Rs 26.23 lakh crore with CASA ratio of 43.81% and advances of Rs 18.92 lakh crore. For instance, HDFC Bank Ltd has an AMB requirement of Rs10,000 for regular savings accounts in metro and urban centres, and Rs5,000 in semi-urban branches.

"We all, including myself, want a first class service, but want everything free.I also like it".