Good News for SBI Consumers: SBI Considering of Reducing Minimum Balance in Savings Banks Accounts

Banking National News

Business Mantra News

  • The State Bank of India is mulling over to slash minimum balance requirement in Saving Banks Accounts of its customers.
  • The proposal came after the reports showed that the lender received a hefty amount as penalty from customers for non-maintenance of monthly average balance in savings accounts during April to November 2017.
  • The SBI may lower the limits of its Minimum Average Balance (MAB) in Saving Accounts.
  • SBI is likely to reduce the penalties over non maintenance of MAB with a view to slash the burden from its customers.
  • The minimum balance limit is Rs.3000 in metro cities, Rs.2000 in semi urban and Rs.1000 in banks of rural areas.
  • The bank had earlier set the minimum balance requirement to Rs.5000 for metros and Rs.3000 for Semi Urban in June 2017.
  • As per the sources, the bank may cut the minimum balance requirement to around Rs. 1000 from 3000.
  • The Bank is also introducing the Quarterly Average Balance plan instead of Monthly Average Balance (MAB).

As per present norms of the SBI, the customer has to pay a penalty of up to Rs 100 including service tax. In metro cities, there is a charge of Rs 100 plus service tax, if the balance falls below 75 per cent of the minimum balance.

About the author