SBI Minimum Balance On Savings Bank Accounts: How Much Fine You Have To Pay

SBI or State Bank of India is charging a fine on savings bank account customers not meeting the average monthly balance requirement. The amount of penalty for non-compliance with the monthly average balance or MAB requirement is based on customer location – metro, urban, semi-urban and rural. This was said by India’s largest bank SBI on Twitter while specifying various ranges according to which it will levy the charges. Charges levied for not maintaining the minimum balance depend upon how much the average balance in the account is below the agreed minimum, said SBI, which has introduced minimum balance requirement in savings accounts from April 1. SBI also unveiled a new identity after merging its operations with six other banks recently.

What is minimum balance requirement?

SBI savings bank account customers need to maintain a monthly average balance or MAB, which is the average of daily balances in the account during the month.

When do SBI savings bank account customers pay this charge?
Failing to maintain the monthly balance as specified by the bank will attract a fee.

What to do?

“A regular review of your account will help you to ensure the average monthly balance is maintained and avoid the minimal charges,” State Bank of India (SBI) said in another tweet.

How much fine do I need to pay?

Banking behemoth SBI has divided its customers into four categories: metro, urban, semi-urban and rural.

For metro customers:

SBI requires its savings bank account customers in metros to maintain a monthly average balance of Rs. 5,000.

In case the monthly average balance of an SBI savings bank account holder comes out to be between Rs. 2,500 and Rs. 5,000 – a shortfall of less than 50 per cent, a charge of Rs. 50 plus service tax will be levied, SBI said. For those with a shortfall of between 50 and 75 per cent (MAB from Rs. 1,250 to Rs. 2,500), a fee of Rs. 75 plus service tax will be charged, and Rs. 100 plus service tax for those keeping an average less than Rs. 749 (more than 75 per cent shortfall).
Shortfall SBI charges plus service tax
Over 75% Rs. 100
50-75% Rs. 75
Till 50% Rs. 50

For urban customers:
Shortfall SBI charges plus service tax
Over 75% Rs. 80
50-75% Rs. 60
Till 50% Rs. 40

For semi-urban customers:
Shortfall SBI charges plus service tax
Over 75% Rs. 75
50-75% Rs. 50
Till 50% Rs. 25

For rural customers:
Shortfall SBI charges plus service tax
Over 75% Rs. 50
50-75% Rs. 30
Till 50% Rs. 20

The charges have been permitted by the Reserve Bank of India and are being levied by banks across the industry “and help us in providing better services to the customers”, SBI added.

Besides savings bank accounts, SBI offers some other accounts wherein customers are not required to maintain a minimum balance. SBI’s small savings bank account and basic savings account are two such products.

After its merger with five associate banks and Bharatiya Mahila Bank, SBI has entered the league of top 50 global banks with a balance sheet size of Rs. 41 lakh crore, 2.77 lakh employees, 50 crore customers, over 22,500 branches and 58,000 ATMs.

[“source-ndtv”]