SBI clarifies minimum balance requirement rules not applicable on basic savings accounts

State Bank of India (SBI), country's largest bank clarified on Saturday that the monthly average balance non-maintenance charges are not applicable on basic savings accounts including Prime Minister's Jan Dhan Yojna (PMJDY) accounts.

"Small accounts including PMJDY and Basic Savings Bank Deposit (BSBD) accounts are exempted from MAB requirement and no charges are recovered from these accounts," the SBI said on Saturday.

Out of the 40 crore savings bank accounts that the SBI has, 13 crore accounts fall under these exempted categories, the state-owned lender said.

The clarification comes after a report by Moneylife said that the All India Reserve Bank Employees Association (AIRBEA) has sought RBI Governor's intervention on charges and penalty levied by State Bank of India (SBI) on account holders.

The report quoted Samir Ghosh, General Secretary of AIRBEA, who wrote a letter to RBI Governor Dr Urjit Patel, that said, "We are being constrained to draw your kind attention to certain recent business decisions of the country's largest bank SBI like withdraw cash only three times a month free of charge and fine failure to maintain balance."

At present, regular savings bank accounts attract penalties for non-maintenance of minimum balance in savings accounts on a quarterly basis. For accounts held in metro branches, the minimum balance required is Rs 5,000.

If the amount falls below Rs 3,750 (or 75 percent), the penalty is Rs 100 plus service tax.

The charges and minimum account balance vary across metro, urban, semi-urban and rural areas.

However, SBI said that those who want to avoid paying monthly average balance non-maintenance charges, they can convert their savings account to Basic Savings Bank Deposit Account without any cost.

Such Basic Savings Bank Deposit Accounts are aimed at encouraging savings without any burden of charges or fees and meant for the poorer sections of society, SBI's website said.

Eligibility criteria to open the account are same as it is there in case of regular savings bank account.

Mode of Operation: Can be opened by a person, single or joint, or with either or survivor, former or survivor, anyone or survivor etc. facility.

Available at: All branches

Minimum balance amount: NIL

Maximum balance /amount: No upper limit

Rate of Interest: As applicable to savings bank accounts

Operations in the Account: Using withdrawal forms at branches or through ATMs. Basic RuPayATM-cum-debit card will be issued free of cost.

Service Charges: The Basic RuPay ATM-cum-Debit card will have no annual maintenance charge.

Receipt/ credit of money through electronic payment channels like NEFT/RTGS will be free

Deposit/ collection of cheques drawn by Central/State Government will be free

No charge on activation of inoperative accounts

No account closure charges.

No other account: Customer cannot have any other savings bank account if he/she has a Basic Savings Bank Deposit Account.

Withdrawal limit: Only four free withdrawals in a month, including ATM withdrawals at own and other bank's ATMs and transactions through other modes including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMIs debit etc.

After the four free ATM withdrawals, customers of Basic Savings Bank Deposit Account will be charged Rs 50 plus tax for cash withdrawal at an SBI branch,  20 plus tax at other bank ATMs and Rs 10 plus tax at SBI ATMs, SBI said.