Beena Parmar Moneycontrol News
State Bank of India (SBI), country’s largest bank, has reduced minimum monthly average balance (MAB) on savings accounts for metros from Rs 5,000 to Rs 3,000 and charges for non-maintenance were reduced by 20-50 percent across categories.
Effective from October 1, the bank said it has decided to treat the metro and urban centres in the same category and the requirement of MAB in metro centres stands reduced to Rs 3000.
Minimum balance for urban, semi-urban and rural centres continues to be at Rs 3,000, Rs 2,000 and Rs 1,000, respectively, as per the bank’s website.
Charges
For non-maintenance of MAB, the charges have also been revised downward ranging from 20 percent to 50 percent across all population groups and categories, the bank said in a statement.
“The charges at semi-urban and rural centres range from Rs 20 to 40 (from Rs 25-75 currently) and at urban and metro centres from Rs 30 to 50 (from Rs 50-100 currently).
The government bank has also removed charges for non-maintenance of Monthly Average Balance (MAB) for pensioners, beneficiaries of social benefits from the government and accounts of minors.
“This is in addition to the already exempted categories under PMJDY (Prime Minister’s Jan Dhan Yojna) accounts and Basic Savings Bank Deposits Accounts (BSBD),” the statement added.
The bank has a strong deposit franchise having 42 crore 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.
Following categories of savings bank accounts are excluded from MAB requirement:
- Small Accounts
- Basic Savings Bank Deposit Accounts
- Financial Inclusion 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
The bank also clarified that customers always have 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
