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

Erika Holt
March 13, 2018

In 2017 October, SBI had slashed the service charges on not keeping up the monthly normal balance by an incredible 20-half.

Public lender State Bank of India (SBI) has reduced charges for the non-maintenance of Average Monthly Balance (AMB) in savings accounts, effective April 01, 2018.

For customers in metro and urban areas, applicable charges for not maintaining Rs3,000, which is the AMB, have been brought down to Rs10-15 from Rs30-50 now.

For semi-urban and rural centres, the charges have been reduced from Rs 40 to Rs 12, and Rs 10 per, respectively.

"We have reduced these charges taking into account the feedback and sentiments of our customers", SBI's managing director (retail and digital banking) P K Gupta said. In metro cities, the minimum balance you need to maintain is Rs3,000; it is Rs2,000 in semi-urban branches; and Rs1,000 in rural branches. "Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied".

In October past year, SBI had slashed service charges on not maintaining monthly average balance by a whopping 20-50%.

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In a good news, shifting to BSBD account is also free of charges at SBI.

The move will benefit 25 crore customers of the bank. SBI earned Rs 1,771 crore in 8 months by charging people for non-maintenance of AMB, while their July-September quarter net profit was Rs 1,581.55 crore. However, the minimum amount to be maintained in the account remains the same. Besides pensioner/minors/social security benefit holders accounts were already exempted.

RBI guidelines mandate that charges for non-maintenance of minimum balance in savings bank accounts be "reasonable". Besides, it has unveiled a Rs 2.11 lakh crore recapitalisation plan.

"When an SBI customer uses a debit card at some other bank ATM, then SBI has to pay Rs 17 to the bank".

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.

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