Published: Tue, March 13, 2018
Worldwide | By Isabel Fisher

SBI reduces charges for non-maintenance of AMB

SBI reduces charges for non-maintenance of AMB

The State Bank of India (SBI) on Tuesday announced a decrease in the penalty it charges for non-maintenance of average minimum balance in savings bank account.

The revised charges will be effective from April 1, 2018. The decision comes in view of the feedback from the various users. If you maintain a minimum balance of less than 50% in metro cities, at present you have to give 30 rupees plus GST of 5.4 rupees. Similarly for Semi-Urban and Rural centres, the charges have been reduced from Rs 40 every month to Rs 12 and Rs 10 GST charges will be applicable over and above the rates specified above.

For customers in metro and urban areas, applicable charges for not maintaining Rs3,000, which is the AMB, have been brought down to Rs10-15 from Rs30-50 now. "We have always focused on keeping the interests of our customers first and this is one of our many efforts towards fulfilling customer expectations", SBI Managing Director for retail and digital banking P K Gupta said in a release.

The bank has strong deposit franchise having 41 crore savings accounts and the above revision will benefit around 25 crore customers, he said.

SBI has reviewed its minimum balance requirement following a finance ministry report which showed that SBI collected Rs 1,771 crore during April-November 2017 as a penalty from customers for non-maintenance of monthly average balance in savings accounts. This is expected to benefit 25 crore customers, ANI reported.

At SBI, in metro and urban centres, a customer has to maintain a AMB of Rs 3000, while in semi-urban region the AMB stands at Rs 2000 and in rural centres a Rs 1000 AMB is needed. Besides pensioner/minors/social security benefit holders accounts were already exempted.

SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees.

Including SBI, other banks across the country also charge penalties if there are not enough funds in the account. Besides, students aged below 21 years are also not required to maintain minimum balance. Besides, it has unveiled a Rs 2.11 lakh crore recapitalisation plan.

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