State Bank of India

SBI has earned Rs 235 crore as penalty from customers in june


Strange but true, if you are having your account in SBI then maintain minimum balance into their account otherwise bank will penalise you. With this penalty SBI has earned Rs 235 crore from such account holders in the month of june. Although SBI has clarified that they are reviewing charges for certain categories of accounts for non-maintenance of monthly average balance (MAB) after receiving feedback from customers.

In April 2017, the country’s largest bank reintroduced charges on non-maintenance of monthly average balance (MAB) after a gap of five years. We have received feedback from our customers on the issue and we are reviewing those. The bank will take into account those and make an informed decision,” SBI official said.

Meanwhile we are also reviewing whether any moderation for certain categories of customers like senior citizens and students needs to be done anywhere. As per the list of revised charges of SBI, failure to maintain MAB in accounts will attract a penalty of up to Rs. 100 plus goods and services tax (GST).

In metropolitan city and rural areas  MAB is Rs 5000 and Rs 1000 respectively. In urban areas penalty is between Rs 50-Rs 100 plus GST while in rural areas penalty in between Rs.20 to Rs. 50 plus GST.

SBI says the bank has over 40 crore savings bank accounts including 13 crore of Basic Savings Bank Deposit (BSBD) and Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts. Out of 27 crore normal saving bank account around 20 percent custormers are not maintaining MAB. Although the bank has exempted BSBD and PMJDY accounts from maintaining the minimum balance requirement.

IN the month of April Bank had served notice to all such account holders and asked them to maintain minimum balance into their account by May. When they fail to maintain the monthly average balance then we recovered Rs. 235 crore from such account holders as penalty in the month of June.

There is huge cost in maintaining the savings accounts and banks should be allowed to recover some costs. A customer holding a normal savings account has an option to convert his or her account into a BSBD account which will exempt the individual from maintaining monthly average balance (MAB).


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