In order to attract new customers, State Bank of India (SBI) has done away with minimum balance criteria for saving banks account.
The bank will not levy any charge for breaching minimum balance criteria.
The facility is available to existing customers also, SBI said in an advertisement.
For the normal SBI savings account with cheque book facility, a customer had to maintain a minimum balance of Rs 1,000 in his or her account failing which it attracted penalty.
There are certain saving account products of the bank where the minimum monthly balance is as low as Rs 50. Depending on features and facility, the minimum average monthly balance varies.
The waiver would help the bank in improving customer base, an official said, adding, it will also help the bank inc generating low cost deposits as the savings bank account earns interest rate of just 4%.
As of March 2012, SBI had 15.39 crore saving banks accounts. During 2011-12, the bank opened 2.19 crore such accounts.
On the other hand, the minimum balance requirement for savings bank account of private sector bank like ICICI Bank, and HDFC Bank is Rs 10,000. This is for an individual having account in any branch in a metro centre.
Failing to maintain minimum average monthly balance in ICICI Bank attracts a fine of Rs 250 per month for the metro region.
In case of savings bank account with foreign banks like Citibank, the minimum average monthly balance criteria Rs 25,000 for metro centres.