SBI cuts minimum average balance from Rs 5000 to Rs 3000

SBI has lowered the average minimum balance requirement under its savings account for metro customers to Rs 3,000 from Rs 5,000 earlier following protests. The bank has also decided to do away with the minimum balance requirement for minors and pensioners and has reduced the penal charges.

In a statement issued here on Monday, SBI said that the bank has decided to treat metro and urban centres in the same category.

For non-maintenance of minimum average balance (MAB), the charges have been revised downward, ranging from 20% to 50% across all population groups and categories. The new charges at semi-urban and rural centres range from Rs 20 to Rs 40, and at urban and metro centres from Rs 30 to Rs 50. The revised MAB requirement and charges will become applicable from the month of October 2017. The above revision will benefit 5 crore account holders.

The bank also clarified that a customer always has the option of converting the regular savings bank account to a basic savings bank deposit (BSBD) account, free of charge, in case he desires to avail basic savings bank facilities without being subject to MAB maintenance.

In June, SBI had announced its new norms on minimum balance and had introduced penalties for non-compliance. Of the 42 crore-plus savings accounts opened by the bank, over 13 crore were under the Pradhan Mantri Jan-Dhan Yojana (PMJDY). These accounts were the BSBD accounts, which every bank is expected to offer to the underprivileged. #casansaar (Source - PTI, Times of India)