SBI waives closure charges for savings accounts that are over 1 year old

Recently, SBI slashed charges on non-maintenance of MAB by 20-50 per cent across customer categories

State Bank of India (SBI) account holders will have reason to cheer as the state-owned lender has waived off account closing charges for all savings bank customers under the condition that their account has existed for over a year. The waiver came into effect on October 1. Earlier, the bank used to deduct a sum of Rs 500, along with the applicable goods and services tax (GST), in the form of account closing charges for all accounts other than those closed during the 14-day free-look period.

The same charges that were levied on the closure of account during the settlement of accounts of deceased depositors have also been waived. Further, closure of regular savings bank account by a basic savings bank deposit (BSBD) account holder will also not attract any closure charges under the new rules. 

However, closure of a savings account after 14 days from its opening and before it has completed one year would still attract Rs 500, along with GST, as closure charge. 

Bank officials cited by the Times of India, which also reported the development, said that the move would make it easier for customers who were being penalised over not maintaining the minimum balance to close their accounts. It would also allow account holders to switch from their regular savings bank accounts to a basic savings bank account. (Read more about BSBD accounts here) 

More changes have also been brought in by the bank

1) In a September 20 twitter post, SBI informed customers that account holders of the State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Raipur, State Bank of Travancore, State Bank of Hyderabad, and Bhartiya Mahila Bank would have to apply for new cheque books. Old IFS codes and chequebooks of the aforementioned banks became invalid after September 30.

2) As reported last week, faced with an outcry over levying fees for failing to maintain monthly average balance (MAB) in savings bank accounts, SBI slashed charges on non-maintenance of MAB by 20-50 per cent across customer categories.  

"The pensioners and beneficiaries of social benefits from the government and accounts of minors (up to 18 years) will be exempted from minimum balance requirement. The financial inclusion including Jan Dhan accounts have never been subject to any charges," SBI said in a statement.

For customers in metro regions, it also reduced the minimum amount to be maintained in savings bank accounts to Rs 3,000 from the previous requirement of Rs 5,000.

The revised MAB requirement and charges became applicable from October 2017.

The revised charges at semi-urban and rural centres range from Rs 20 to Rs 40. And, at urban and metro centres, from Rs 30 to Rs 50.