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SBI slashes non-maintenance charges of minimum balance by 75 per cent

13 March 2018

SBI cuts down charges on minimum balance maintenance.

In a move that is likely to benefit around 25 crore customers of the PSU bank, the State Bank of India (SBI) on Tuesday slashed charges for non-maintenance of Average Monthly Balance (AMB) in savings accounts by almost 75 per cent. The move will benefit almost 25 crore of the bank's customers.

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Now, the AMB for customers in Metro and Urban centres have been reduced from a maximum of Rs. 50/- p.m plus GST to Rs. 15/- p.m. plus GST. "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. "Our bank also offers its customers the option to shift from regular savings bank account to BSBD account on which no charges are levied". In the municipal corporation a fine of Rs. 50 GST tax is Rs. Rs 65 will be charged and in the municipal area Rs. 52 will be charged. The move had invited widespread criticism. These new rates will be effective from April 1. SBI earned Rs 1,771 crore in 8 months by charging people for non-maintenance of AMB, while their July-September quarter net profit was Rs 1,581.55 crore.

Of the 41 crore savings accounts with SBI, 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted from the feature. While ICICI charges Rs 100 plus 5 percent of the shortfall in required MAB, HDFC Bank charges up to Rs 600 for not maintaining the balance. With SBI taking this step, it can be expected that other banks would follow too. 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. Besides, it has unveiled a Rs 2.11 lakh crore recapitalisation plan.

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Nearly, 25 crore bank customers will be getting the benefit of this order. Currently, the charges are in the range of Rs20-40.

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SBI slashes non-maintenance charges of minimum balance by 75 per cent