Faced with outcry over levying fees for failing to maintain monthly average balance (MAB) in savings bank account, State Bank of India has slashed charges on non-maintenance of MAB by 20-50% across customer categories.
“The pensioners and beneficiaries of social benefits from the government and accounts of minors (upto 18 years) will be exempted from minimum balance requirement. The financial inclusion including Jan Dhan accounts have never been subject to any charges,” SBI said in statement.
For customers in metro regions, it also reduced minimum amount to be maintained in SB account to Rs 3,000 from previous requirement of Rs 5,000.
The revised MAB requirement and charges will become applicable from October 2017, SBI said in a statement today.
Those who want to avoid paying monthly average balance non-maintenance charges, they can convert their savings account to Basic Savings Bank Deposit Account without any cost, SBI further said.
Aimed at encouraging savings without any burden of charges or fees, SBI’s Basis Savings Bank Deposit Account is meant for the poorer sections of society, SBI’s website said. Eligibility criteria to open the account are same as it is there in case of regular savings bank account. However, the customer cannot have any other savings bank account if he/she has a Basic Savings Bank Deposit Account, SBI said.
There are also some limitations in this account. Customers of these accounts are allowed to do only four free withdrawals in a month, including ATM withdrawals at own and other bank’s ATMs and transactions through other modes including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMIs debit etc. After the four free ATM withdrawals, customers of Basic Savings Bank Deposit Account will be charged Rs. 50 plus tax for cash withdrawal at an SBI branch, Rs. 20 plus tax at other bank ATMs and Rs. 10 plus tax at SBI ATMs, SBI said.