SBI cuts minimum balance requirement in savings account to Rs 3,000

Exempts pensioners, minors from minimum balance norm

Faced with outcry over levying fees for failing to maintain monthly average balance (MAB) in savings bank account, State Bank of India has slashed charges on non-maintenance of MAB by 20-50% across customer categories.  

"The pensioners and beneficiaries of social benefits from the government and accounts of minors (upto 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 statement.

For customers in metro regions, it also reduced minimum amount to be maintained in SB account to Rs 3,000 from previous requirement of Rs 5,000.

The revised MAB requirement and charges will become applicable from October 2017, SBI said in a statement today.

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.

The bank has a very strong deposit franchise having 420 million savings bank accounts out of which 130 million accounts under PMJDY/BSBD were already exempted. The above revision is likely to benefit another 50 million account holders.

Bank had received several representations to revises fees charged on failing to keep minimum balance. These had triggered review of charges, which the bank began to apply from April 2017. It would be premature to estimate the impact of revision in charges on fee income, SBI executives said.