SBI waives minimum balance criteria for savings bank account

In order to attract new customers, State Bank of India (SBI) has done away with minimum balance criteria for saving banks account. SBI said in an advertisement that the bank will not levy any charge for breaching minimum balance criteria. It said that the facility is available to existing customers also. 

For the normal SBI savings account with cheque book facility, a customer had to maintain a minimum balance of Rs 1,000 in his or her account failing which it attracted penalty.

There are certain saving account products of the bank where the minimum monthly balance is as low as Rs 50.

Depending on features and facility, the minimum average monthly balance varies.

SBI officials said that the waiver would help the bank in improving customer base, an official said, adding, it will also help the bank inc generating low cost deposits as the savings bank account earns interest rate of just 4 per cent.