SBI revises service charges on maintaining monthly average balance

Mumbai: India's largest bank, the State Bank of India (SBI), on Monday lowered the minimum average monthly balance (MAB) requirement in a savings account to Rs 3,000 from Rs 5,000.

It also revised downwards penalties for not maintaining such a balance.

"SBI would like to state that financial inclusion including JAN DHAN Accounts have never been subject to any charges. In respect of the rest, it has now been decided to exempt the pensioners, beneficiaries of social benefits from the Government and accounts of Minors," the bank said.

The Bank has done this is in addition to the already exempted categories under PMJDY accounts and Basic Savings Bank Deposits Accounts (BSBD).

SBI has also revised downwards the penalty for non-maintenance of MAB, "For non-maintenance of MAB, the charges have also been revised downward ranging from 20% to 50% across all population groups and categories. The 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 Bank has a very strong deposit franchise having 42 crores Savings Bank accounts out of which 13 crore accounts under PMJDY / BSBD were already exempted. The above revision is likely to benefit another 5 crore account holders.

"The Bank also clarified that 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 maintain MAB," the bank said.

The bank has excluded the following categories of Savings Bank Accounts from MAB requirement: Financial Inclusion Accounts, Basic Savings Bank Deposit Accounts, Small Accounts, Phela Kadam and Pheli Udaan accounts, Minors up to the age group of 18 (Primary Account Holder), Pensioners, all categories, including recipients of social welfare benefits.