In a move that will provide widespread relief to over 25 crore account holders, the revised average minimum balance (AMB) rates have been cut by up to 75% and will be applicable from April 1.
In semi-urban, SBI will charge a minimum of Rs.7.50 and the maximum charge of Rs.12 plus GST.
SBI has also slashed charges for not-maintenance of Rs2,000 as ABM in bank accounts in semi-urban areas to Rs7.50-12 and Rs1,000 in accounts in rural area to Rs5-10.
Now SBI customers have even more cause to celebrate: The lender has made a decision to lower the penalty further, to just Rs 15, plus GST, per month for customers in the metros and urban centres. K. Gupta said, "We have decreased these charges taking into account the feedback and viewpoints of our customers".
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"The bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customers' expectations", 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.
The bank rejects Jan Dhan accounts, essential funds bank stores (BSBD) accounts, retired people, recipients of social advantages from the legislature and records of minors from the MAB necessity. Therefore, this latest revision is aimed at benefiting the remaining 25 crore of its customers who do not fall into the above categories. Let's assume he had a balance of Rs 10,000 in his savings account on February 1, but withdrew Rs 8,000 on Feb 8.
The bank has a very strong deposit franchise having 41 crores Savings Bank accounts out of which 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted.
The Bank also provides the option of converting the regular savings bank account to Basic Savings Bank Account (BSBD account), free of charge. In addition, students upto the age of 21 years are also exempted, it said in the release. This amount was more than SBI's net profit for the July-September quarter.