Recently the Monthly Penalty For Not Maintaining Minimum Balance has been Slashed.
About State Bank of India
The charges for non-maintenance of AMB for customers in Metro and Urban centers have been reduced from a maximum of Rs. 50/- p.m plus GST to Rs. 15/- p.m. plus GST.
Similarly, for Semi-Urban and Rural centers the charges have been reduced from Rs. 40/- p.m plus GST to Rs. 12/- and Rs. 10/- p.m. plus GST respectively. (Table enclosed below)
On the reduction of charges, Mr. P K Gupta, MD – Retail & Digital Banking, SBI said, “We have reduced these charges taking into account the feedbacks and sentiments of our customers. Bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations. Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied.”
The Bank has a very strong deposit franchise having 41 crores Savings Bank accounts out of which 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted. In addition, students upto the age of 21 years are also exempted. The above revision in AMB will benefit 25 cr. customers.
The Bank also clarified that customer always has the option of converting the regular savings bank account to Basic Savings Bank Account (BSBD account), free of charge, in case he desires to avail basic savings bank facilities without being subject to maintenance of AMB. The features of BSBD accounts are available on the bank’s website bank.sbi
Table of charges for non-maintenance of AMB across various categories.
This table enlist the previous charges and the current charges.
|Metro & Urban (AMB Rs. 3000/-)||Existing Charges p.m.||Proposed Charges p.m.|
|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|
The bank also reiterated that the customer always has the option of converting their regular savings bank accounts to Basic Savings Bank Accounts or BSBD accounts, free of charge, in case they desire to avail basic savings bank facilities without being subject to maintenance of AMB.
The Bank has a very strong deposit franchise, with 41 crores Savings Bank accounts, out of which 16 crore accounts under the Pradhan Mantri Jan Dhan Yojna /BSBD and those of pensioners, minors, social security benefit holders, were already exempted. In addition, students up to the age of 21 years are also exempted. Therefore, this latest revision is aimed at benefiting the remaining 25 crores of its customers who do not fall into the above categories.
According to us, we think this is a welcome move as a consumer point of view.