SBI cuts charges for balance shortfall by up to 70%

SBI cuts charges for non-maintenance of minimum balance Know new rates

SBI cuts charges for non-maintenance of minimum balance Know new rates

The SBI Bank has issued a notification on April 1, reducing the penalty on a savings account. The country's largest lender State Bank of India (SBI) has announced reduction of these charges from 1 April 2018. Earlier, metro and urban customers were charged Rs 40-100 for not maintaining minimum balance. For Semi-Urban and Rural centres the charges have been reduced from Rs 40 per month plus GST to Rs 12 per month and Rs 10 per month plus GST respectively.

The bank said in a release that customers in metro and urban centres will now have to pay Rs 15 per month plus GST.

Retail & Digital Banking, SBI said, "We have reduced these charges taking into account the feedback and sentiments of our customers".

"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.

SBI has reviewed its minimum balance requirement following a finance ministry report which showed that SBI collected Rs 1,771 crore during April-November 2017 as a penalty from customers for non-maintenance of monthly average balance in savings accounts.

SBI reported a net loss of Rs 2,416 crore for the December quarter as it had to make provisions for rising bad loans. This penalty was brought down to Rs 30-50.

In fact, when the news came that the SBI did not get the average monthly balance, after receiving a huge amount of Rs 1,771 crore in just 8 months, the bank started facing criticism. The charges at semi-urban and provincial centers were also updated to Rs 20-40 from Rs 25-75. He added that depositors had the option to convert their regular savings accounts to basic savings deposit accounts, which do not fine holders if they do not maintain a minimum balance every month. Besides pensioner/minors/social security benefit holders accounts were already exempted. The bank rejects Jan Dhan accounts, essential funds bank stores (BSBD) accounts, retired people, recipients of social advantages from the legislature and records of minors from the MAB necessity.

Additionally, students up to the age of 21 years are also exempted.

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