SBI reduces charges on non-maintenance of minimum balance by 75%
SBI also offers its customers options to convert their regular savings bank account to basic savings bank deposit account free of charge.
- Mar 13, 2018,
- Updated Mar 13, 2018 6:49 PM IST
The SBI's decision to reduce penalty for non-maintenance of an average monthly balance (AMB) by 75 per cent will benefit over 25 crore of its customers. The latest decision by the country's largest public sector bank was taken after feedback from various stakeholders. The new charges will be application from April 1. AMB is the minimum balance customers are required to maintain in their bank account. As per the latest decision, the bank will charge Rs 15 per month, excluding GST, for non-maintenance of balance in metro and urban cities, from Rs 50 per month plus GST charged currently.
For rural and semi-urban centres, the charges have been brought down to Rs 10 and Rs 12 per month plus GST respectively from Rs 40 per month plus GST.
"We have reduced these charges taking into account the feedback and sentiments of our customers," SBI's managing director (retail and digital banking) P K Gupta said. "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 added.
The decision comes after the lender faced severe criticism that the bank earned more from penalising customers who failed to maintain AMB than their July-September quarter net profit. 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.
SBI also offers its customers options to convert their regular savings bank account to basic savings bank deposit account (BSBD) on which no charges are levied. A customer always has the option of converting the regular savings bank account to BSBD account free of charge, in case he desires to avail basic savings bank facilities without being subject to maintenance of AMB, Gupta said.
After a revision last 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 has 41 crore savings bank accounts, out of which 16 crore accounts are under the Pradhan Mantri Jan Dhan Yojna/ BSBD, and of pensioners, minors or social security benefit holders. These accounts are already exempted from charges on non- maintenance of minimum balance.
(With PTI inputs)
The SBI's decision to reduce penalty for non-maintenance of an average monthly balance (AMB) by 75 per cent will benefit over 25 crore of its customers. The latest decision by the country's largest public sector bank was taken after feedback from various stakeholders. The new charges will be application from April 1. AMB is the minimum balance customers are required to maintain in their bank account. As per the latest decision, the bank will charge Rs 15 per month, excluding GST, for non-maintenance of balance in metro and urban cities, from Rs 50 per month plus GST charged currently.
For rural and semi-urban centres, the charges have been brought down to Rs 10 and Rs 12 per month plus GST respectively from Rs 40 per month plus GST.
"We have reduced these charges taking into account the feedback and sentiments of our customers," SBI's managing director (retail and digital banking) P K Gupta said. "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 added.
The decision comes after the lender faced severe criticism that the bank earned more from penalising customers who failed to maintain AMB than their July-September quarter net profit. 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.
SBI also offers its customers options to convert their regular savings bank account to basic savings bank deposit account (BSBD) on which no charges are levied. A customer always has the option of converting the regular savings bank account to BSBD account free of charge, in case he desires to avail basic savings bank facilities without being subject to maintenance of AMB, Gupta said.
After a revision last 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 has 41 crore savings bank accounts, out of which 16 crore accounts are under the Pradhan Mantri Jan Dhan Yojna/ BSBD, and of pensioners, minors or social security benefit holders. These accounts are already exempted from charges on non- maintenance of minimum balance.
(With PTI inputs)