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SBI changes minimum balance requirement, charges for account closure

SBI changes minimum balance requirement, charges for account closure

New Delhi: The country’s largest lender State Bank of India from 1st October 2017 lowered the minimum average monthly balance (MAB) requirement in a savings account to Rs 3,000 from Rs 5,000 and also revised downwards penalties for not maintaining such a balance.

The public sector lender also decided to exempt pensioners, beneficiaries of social benefits from government and minors from the requirement of minimum balance in a savings account.

In April, the bank had re-introduced MAB and charges for non-maintenance of balance after a gap of five years. In metropolitan areas, the minimum balance requirement was Rs 5,000. For urban and semi-urban branches, it was fixed at Rs 3,000 and Rs 2,000, respectively, and for rural branches, it was Rs 1,000.

“We have decided to treat the metro and urban centres in the same category and the requirement of MAB in metro centres stands reduced to Rs 3,000,” the bank said. Last week, managing director for national banking group, Rajnish Kumar, had said the lender was reviewing the average monthly balance requirement.

The lender also revised downwards the penalty for non-maintenance of MAB. “For non-maintenance of MAB, the charges have also been revised downwards ranging from 20-50 percent across all population groups and categories,” the bank said.

Now, the charges at semi-urban and rural centres range from Rs 20 to Rs 40 and at urban and metro centres from Rs 30 to Rs 50, the bank said. Earlier, in the metros, the bank was charging Rs 100 plus GST if the balance fell below 75 percent of the MAB of Rs 5,000. If the shortfall was 50 percent or less, the penalty charge was Rs 50 plus GST.

Any shortfall in maintaining minimum average balance in rural areas was attracting a penalty in the range of Rs 20 to Rs 50 plus GST. The bank reiterated that basic savings bank deposit and PM’s Jan-Dhan accounts are not required to maintain the minimum balance. The lender has 42 crore savings bank accounts of which 13 crore belong to this category.

“It has now been decided to exempt the pensioners, beneficiaries of social benefits from government and accounts of minors. The revision is likely to benefit another 5 crore account holders,” the bank said.

Account closure charges

According to the report published in NDTV, SBI has also removed account closure charges for some type of accountholders.

There will no charges for closure of regular saving accounts on conversion of it to the basic saving accounts. Earlier, the charges for this service was Rs. 500 plus 18% GST.

In the same manner, there will no charges if the account of the deceased depositor is closed. SBI even made closing charges nil for the account which was opened at least one year before.

However, if anyone closes SBI account after 14 days up to 1 year of its openings, then he/she has to pay account closure charges which will be Rs. 500 plus 18% GST.

Cheque books of six associate banks of SBI becomes invalid

Earlier, SBI has asked the account holders of its subsidiary banks which were merged recently to get new chequebooks and the Indian Financial System (IFS) codes.

SBI tweeted, “We request customers of SBI’s erstwhile Associate banks and Bharatiya Mahila Bank to apply for new SBI Cheque books as soon as possible.”

It may be mentioned that recently, State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Raipur, State Bank of Travancore and Bhartiya Mahila Bank got merged with SBI.
Requests for obtaining new cheque books can be made through the internet, mobile banking, ATM or by visiting the concerned banks.

With inputs from PTI