SBI cuts charges for balance shortfall by up to 70%

SBI cuts charges for balance shortfall by up to 70%

SBI cuts charges for balance shortfall by up to 70%

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

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.

In semi-urban areas, the three penalties will be Rs 7.50 instead of Rs 20, Rs 10 instead of Rs 30 and Rs 12 instead of Rs 40. "Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied", said P K Gupta, MD - Retail and Digital Banking, SBI.

The bank excludes Jan Dhan accounts, basic savings bank deposits (BSBD) accounts, pensioners, beneficiaries of social benefits from the government and accounts of minors from the MAB requirement.

After a revision a year ago, customers from urban centres are required to maintain a balance of Rs 3,000, while it is Rs 2,000 and Rs 1,000 for semi-urban and rural centres respectively. The revised charges will be viable from April 01, 2018 and will profit more than 25 crore clients.

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However, the bank has not lowered the monthly minimum balance requirement which has been retained at Rs 3,000 for metro customers, at Rs 2,000 for semi-urban accounts and at Rs 1,000 for rural accounts.

Public sector banks (PSBs) are reeling under bad loans.

"The bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customers' expectations", he said. Besides pensioner/minors/social security benefit holders accounts were already exempted.

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

SBI's penalty on non-maintenance of AMB has been defended and justified by chairman Rajnish Kumar and his predecessor Arundhati Bhattacharya. The bank had subsequently lowered the AMB, following criticism from the customers. This is expected to benefit 25 crore customers, ANI reported. "Somewhere the bank also needs to recover its cost", he had said.

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