SBI’s reduced MAB effective from today


Taking cognizance on the people outcry against the SBI, which had collected Rs 235 crore from custormer who failed to maintain minimum average balance (MAB) in June this year, SBI has reduced their MAB. It has applicable from October 1. Now customers of SBI savings account will pay lower charges for not maintaining minimum average balance. SBI has also removed charges for account closure in some cases. Also, old cheques of SBI’s associate banks, which were merged with SBI, stands invalid from October 1. Earlier, SBI in a Twitter post had said that account holders of State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Raipur, State Bank of Travancore, State Bank of Hyderabad and Bhartiya Mahila Bank will have to apply for the new cheque books. Old IFS codes of the associate bank branches will also be invalid.

In a recent move, SBI has completely waived off account closure charges for some accounts, effective October 1. In a Twitter post, SBI said that closure of regular savings account on conversion to basic savings bank account, which earlier used to attract a charge of Rs. 500 plus GST of 18 per cent, will be nil now. Similarly, savings accounts closed on settlement of deceased depositors, will also be exempt from charges with effect from October 1. SBI had levied a charge of Rs. 500 plus GST earlier.

Earlier, if you closed a savings account in SBI after one year of opening it, it used to attract a charge of Rs. 500 plus GST. But from October 1, there will be nil charges for this service, SBI said in a twitter post.

SBI also reduced the monthly average balance (MAB) requirement for metro cities – from Rs.5,000 to Rs. 3,000 – and slashed charges for non-maintenance of minimum balance by up to 50 per cent effective today. SBI further said that savings accounts of pensioners, beneficiaries of social benefits from the government and the accounts of minors will be exempt from maintaining monthly average balance from today.


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