State Bank of India (SBI), the country’s largest lender has revised the minimum balance rules that all account holders from November 1, 2019. SBI offers a fixed deposit (FD) and recurring deposit (RD) accounts, apart from saving accounts. SBI Bank has revised the minimum balance rules to ensure sufficient balance in the bank accounts of customers.
Recently, SBI has reduced the interest rate to 3.25 per cent on keeping savings accounts below Rs 1 lakh.
The SBI bank has prescribed certain average monthly balances (AMB) for those holding savings accounts at its four types of branches. According to the bank’s website – sbi.co.in, account holder now needs to maintain a monthly average balance (MAB) to the tune of Rs. 1,000-Rs. 3,000. This rule varies from city to city to SBI account with a minimum balance.
The customers who hold savings accounts at metros or semi-urban branches are required to maintain an average monthly balance of Rs 3,000. Meanwhile, customers who fail to maintain the minimum monthly balance in their accounts have to pay a heavy penalty charge.
According to the SBI website, the monthly balance requirement and the subsequent penalty charges for non-compliance are applicable to savings accounts.
Penalty charges levied by SBI for insufficient balance in a savings account:
Metro and urban branch (required MAB Rs. 3,000) Charges
Shortfall <= 50% Rs. 10 + GST Shortfall > 50-75% Rs. 12 + GST
Shortfall > 75% Rs. 15 + GST
Semi-urban branch (required MAB Rs. 2,000)
Shortfall <= 50% Rs. 7.50 + GST Shortfall > 50-75% Rs. 10 + GST
Shortfall > 75% Rs.12 + GST
Rural (required MAB Rs. 1,000)
Shortfall <= 50% Rs. 5 + GST Shortfall > 50-75% Rs. 7.50 + GST
Shortfall > 75% Rs. 10 + GST
(As mentioned on SBI’s website – sbi.co.in)
To be noted, these charges are not applicable to State Bank of India (SBI) salary accounts, small savings accounts, basic savings accounts, and bank accounts opened under the government’s financial schemes like Jan Dhan scheme, among others.