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Centre asks SBI to roll-back MAB fiat
The Union government on Monday urged the State Bank of India (SBI) to consider a roll-back of its decision of imposing a penalty on customers who fail to maintain the minimum balance in accounts. As per sources, the Centre urged banks, including private ones, to reconsider charges on cash transactions & ATM withdrawals above a certain limit.
Urges HDFC, ICICI to reconsider charges on transactions
​New Delhi: The Union government on Monday urged the State Bank of India (SBI) to consider a roll-back of its decision of imposing a penalty on customers who fail to maintain the minimum balance in accounts. As per sources, the Centre urged banks, including private ones, to reconsider charges on cash transactions & ATM withdrawals above a certain limit.
The request came in after the SBI announced that it will start charging penalty for not maintaining minimum average balance (MAB) in accounts from April 1.
Earlier, the SBI had made an announcement under which it said that it will permit savings bank account holders to deposit cash three times a month for no charges, and levy Rs 50 plus service tax on every transaction post that.
The government has also asked HDFC, ICICI and Axis Bank to reconsider the charges they levied on cash transactions and ATM withdrawals.
From 2 March, these banks began charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals, beyond four free transactions in a month.
As per reports, the monthly average balance (MAB) requirement has been increased to as high as Rs 5,000 for branches in six metros. The penalty will vary from region to region and is expected to be lowest in the rural areas.
As of now, monthly average balance (MAB) for a savings bank account is Rs 500 without facility of cheque book, and Rs 1,000 with cheque book across the country. India’s largest bank has now decided to fix separate MABs for ‘metro’, ‘urban’, ‘semi-urban’ and ‘rural’ areas from the beginning of financial year 2017-2018. The benchmark for MAB and penalties are likely to be followed by other public sector banks.
