PSU banks have reportedly collected Rs 2320.96 crore in FY18 by imposing a penalty on customers who do not maintain their minimum monthly average balance (MAB). The amount was collected during the April-November 2017 period.
According to a report in The Indian Express, country's largest lender, the State Bank of India has reportedly earned Rs 1,771 crore in penalties by levying charges on non-maintenance of monthly average balance. The figure exceeds SBI's July-September quarter net profit of Rs 1,581.55 crore. The amount was also nearly half of the Rs 3,586 crore the bank earned as net profit from April to September.
SBI was followed by Punjab National Bank which recorded the collection of Rs 97.34 crore during the April-November period. Central Bank of India collected Rs 68.67 crore, while Canara Bank recorded Rs 62.16 crore collection, the report said.
SBI had earlier revised the minimum account balance for its savings accounts, as well as the penalties for non-maintenance of minimum balance. The biggest lender had also revised the penalties that account holders are supposed to pay for failing to maintain the stipulated balance in their savings accounts. Customers will have to pay GST over and above the fine they have incurred. The new minimum balance rules became effective from October 1.
Here's a look at what monthly average balances SBI customers will have to pay, depending on their region, and what are the penalties for failing to do so:
The SBI customers in metro cities of India will have to maintain at least a sum of Rs 3,000 as monthly average balance in their savings account, as opposed to Rs 5,000. If MAB falls between Rs 2,999 and Rs 1,500, then the account holder will have to pay Rs 30 as penalty. Whereas, if the average balance at the end of the month comes out to be anywhere from Rs 1,499 to Rs 750 then the penalty for non-maintenance of MAB will be Rs 40, and Rs 50 if the MAB is below Rs 750. Earlier, the penalties for these three stages were Rs 50, Rs 75 and Rs 100 respectively.
The MAB for urban SBI customers remains unchanged, as does the penalty for its non-maintenance. SBI account holders in urban regions of the country will have to maintain Rs 3,000 as monthly average balance, as before. This is same to those for metro city SBI customers. The penalties and conditions for urban area customers will also be the same as SBI clientele from metro cities.
The MAB for semi-urban areas has been unchanged at Rs 2,000, but penalties for non-maintenance have been slashed for this group. People with savings accounts with SBI branches in semi-urban areas will have to pay fines to the tune of Rs 20 if their MAB is between Rs 1,999 and Rs 1,000, as opposed to Rs 25 before. The semi-urban SBI customer will have to pay Rs 30 if their MAB rests between Rs 999 and Rs 500, and not Rs 50 as they did before. For MAB less than Rs 500, they will now have to pay Rs 40 instead of Rs 75.
The minimum balance for SBI clientele in rural areas remains unchanged too at Rs 1000, as do most of their penalties for its non-maintenance as per MAB rules. SBI has kept the penalties for rural customers similar to that of its semi-urban clients, at Rs 20 (for MAB between Rs 999 and Rs 500), Rs 30 (for MAB between Rs 499 and Rs 250), and Rs 40 (for MAB at Rs 249 or less).
Exempted from MAB restrictions
Meanwhile, the SBI has also kept certain groups exempted from the restrictions of maintaining a minimum balance at the end of the month, including financial inclusion accounts, basic savings bank deposit accounts, small Accounts, Phela Kadam and Pheli Udaan accounts, minors till the age of 18 years, and all pensioners including recipients of social welfare benefits.