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Min balance row: SBI breaks silence, says it waived charges for last 6 yrs

The SBI, after a gap of six years, had reintroduced the monthly average balance (MAB) charges from April 1, 2017

Press Trust of India  |  New Delhi 

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Country's largest netted a windfall of Rs 17.71 billion, more than its second quarter profit, from customers for non-maintenance of monthly average balance in savings accounts in eight months of 2017-18, ministry data showed. of has close to 405 million savings account customers. The SBI, after a gap of six years, had reintroduced the monthly average balance (MAB) charges from April 1, 2017. After criticism by customers, it reduced those charges with effect from October 1. "On an average balance of Rs 3,000 in metro, earns Rs 6 only per month whereas for a minimum balance of Rs 1,000 in rural, earns Rs 2 per month which is meagre when compared to the services offered and corresponding costs incurred by the (free cheque book, 8 free transactions, free branch transactions)," the said in a statement. The ministry data showed the charged Rs 17.71 billion from customers on account of non-maintenance of minimum average balance between April and November 2017. Another large public sector bank, Punjab National collected only Rs 973 million for non-maintenance of balance. The other which collected in excess of Rs 50 crore as penalty from customers were Central of India, Canara Bank, IDBI and Indian The charges collected by for non-maintenance of minimum balance exceeds the bank's July-September quarter net profit of Rs 15.81 billion.

The amount was also nearly half of the Rs 35.86 billion the earned as net profit from April to September. "We would like to clarify that savings accounts such as Prime Minister's (PMJDY), Small accounts and Basic Savings Deposit (BSBD) accounts, Pensioners, minors and all social beneficiary accounts are exempted from MAB requirement and no charges ever have been recovered," said.

First Published: Tue, January 02 2018. 22:34 IST
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