Relief For SBI Customers, Penalty For Not Maintaining AMB Reduced By 75%

SBI cuts down charges on minimum balance maintenance

‎The bank had faced a lot of flak after it came to light that it earned more from minimum balance penalties than its profits (which were contained because of bad loan provisions).

Country's largest lender State Bank of India (SBI) has substantially reduced charges for non-maintenance of average monthly balance (AMB) in savings accounts, which would benefit 25 crore banks' customers, an official statement said here on Tuesday.

The charges for non-maintenance of AMB has been trimmed to Rs 15 per month plus GST from the earlier Rs 50 per month plus GST in metro and urban areas, as per a release by SBI.

In semi-urban areas, the three penalties will be Rs 7.50 instead of Rs 20, Rs 10 instead of Rs 30 and Rs 12 instead of Rs 40.

The bank contains Rs. 41 crores savings bank accounts, out of which 16 crore accounts under the Prime Minister's Jan Dhan Yojna (PMJDY), and Basic Savings Bank Deposit Account (BSBD) and of pensioner/minors/social security benefit holders were already exempted.

After a revision past year, customers from urban centres are required to maintain a balance of Rs 3,000, while it is Rs 2,000 and Rs 1,000 for semi-urban and rural centres respectively.

SBI restored (AMB) charges from April 2017, after a gap of 6 years and then revised it downwards in October after feedback from stakeholders.

The new charges, which will benefit about 25 crore bank customers, comes into effect from 1st of next month.

Interestingly, while SBI provided relief to customers in regards to AMB in savings account, it also encouraged customers for shifting towards Bank Saving Bank Deposit (BSBD) account. On the other hand, if we talk about rural areas, you have to maintain a balance of 1000 rupees in your account as a minimum balance.

AMB charges are levied by private banks too.

He said there are more than 14 crore BSBD accounts, where the bank don't charge anything and the It also handles 40 percent of the financial inclusion accounts. The bank had subsequently lowered the AMB, following criticism from the customers.

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