Published: Tue, March 13, 2018
Business | By Kate Woods

SBI to Reduce Fines on the savings account

SBI to Reduce Fines on the savings account

The revised charges will be viable from April 01, 2018 and will profit more than 25 crore clients.

SBI, the country's largest bank, has made a huge reduction in penalties for not maintaining Average Monthly Balance (AMB) in Savings Account.

SBI has reviewed its minimum balance requirement following a finance ministry report which showed that SBI collected Rs 1,771 crore during April-November 2017 as a penalty from customers for non-maintenance of monthly average balance in savings accounts.

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For Semi-Urban and Rural centres charges have been reduced from Rs 40 per month plus GST to Rs 12 and Rs 10 per month plus GST respectively.

SBI now charges penalty from customers for non-maintenance of monthly average balance in savings accounts. The AMB for accounts from metro areas was set at Rs5,000 and those from urban areas at Rs3,000. SBI also provides its customers the option of shifting from a regular savings bank account to basic savings bank deposit account (BSBD) on which no charges are levied. The move had invited widespread criticism.

Applicable goods and service tax (GST) is added to the charges. The charges for non-support of AMB for clients in Metro and Urban focuses have been lessened from a most extreme of Rs 50 every month to Rs 15 every month.

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In a press conference, SBI said, the minimum charges were reduced based on the feedback received from various stakeholders.

SBI reestablished (AMB) charges from April 2017, following a hole of 6 years and afterward amended it downwards in October after input from partners. The minimum balance in metro and urban cities are Rs.3000. This penalty was conveyed down to Rs 30-50. Exempted accounts are those related to Pradhan Mantri Jan Dhan Yojana, basic savings bank deposit account, and accounts of pensioners and minors, among others. Besides, students up to the age of 21 years are also exempted.

The penalty for non-maintenance of MAB is calculated on a staggered basis - depending on the shortfall - so be sure to go through your bank's website for the relevant details.

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