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Reduce MAB further

The Reserve Bank of India has not stipulated any minimum balance to be maintained in pension accounts

Business Standard 

After much of public outcry, the State Bank of India (SBI) has decided to reduce from October 1, 2017, the MAB (monthly average balance) in in metros from Rs 5,000 to Rs 3,000. The have been spared from maintaining minimum balance in their pension accounts. 

The Reserve Bank of India has not stipulated any minimum balance to be maintained in pension accounts. Banks have framed their own rules in this regard and some banks have also permitted zero balance. 

Now that the has rightly decided not to subject the to maintain the MAB, the bank should pay back the the amount of penalty recovered from April 1, 2017. 

Further, as maintaining MAB of Rs 3,000 in metro or urban areas is also going to be difficult to 40-50 per cent of account holders across the country, the bank should change the 

MAB requirement to the pre-April, 2017 position, that is, Rs 1,000 and Rs 500 for account holders of bank branches located in metro/urban and rural areas respectively.

Ramanath Nakhate   Mumbai

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First Published: Thu, September 28 2017. 22:32 IST
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