SBI reviewing minimum balance requirement, to make announcement soon

SBI may cut minimum balance for savings account after severe criticism from customers

SBI reviewing minimum balance requirement, to make announcement soon

As per the list of revised charges of SBI, failure to maintain monthly average balance in accounts attracts penalty of up to Rs 100 plus goods and services tax (GST).

It may be noted that that the SBI garnered through fines was more than lender's net profit of Rs 1,581.55 crore in July-September quarter and almost half of the Rs 3,586 crore profit in April-September period. The amount was also almost half of the Rs 3,586 crore the bank earned as net profit from April to September. However, the urban customers are fined if they fail to maintain 75 percent of the minimum required balance. The new minimum balance rules became effective from October 1. Customers in the metro and urban centres will now have to maintain average Rs 1,000 during the quarter compared to Rs 3,000 average on a monthly basis. Whereas, if the average balance at the end of the month comes out to be anywhere from Rs 1,499 to Rs 750 then the penalty for non-maintenance of MAB will be Rs 40, and Rs 50 if the MAB is below Rs 750.

According to ET sources, the bank is looking at bringing down the MAB to Rs 1,000 but is yet to take a call.

The bank subsequently lowered the MAB following criticism from the customers. According to the ministry, SBI earned Rs 1,771 crore in the first eight months of 2017-18 fiscal year. This is same to those for metro city SBI customers. It also slashed charges from 20-50% for non-maintenance of MAB across all population groups and categories. The requirement of QAB stands revised at Rs 500 instead of Rs 2,000 in Semi Urban and Rs 1,000 in rural areas.

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The minimum balance for SBI clientele in rural areas remains unchanged too at Rs 1000, as do most of their penalties for its non-maintenance as per MAB rules.

Federal Bank officials told Mathrubhumi that accounts that require no MAB are available for depositing pensions and scholarships.

"The Bank has a very strong deposit franchise having 41 crore savings bank accounts out of which 16 crore accounts under PMJDY / BSBD and of pensioner, minors, social security benefit holders were already exempted".

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