SBI slashes charges for non-maintenance of minimum balance

The State Bank of India (SBI) announced a substantial reduction of charges for non-maintenance of Average Monthly Balance (AMB) in savings accounts, effective April 1.

The charges for non-maintenance of AMB for customers in metro and urban centers have been reduced from a maximum of Rs. 50 to Rs.15 per month, excluding Goods and Services Tax (GST). Similarly, for semi-urban and rural centers, the charges have been reduced from Rs. 40 to Rs. 12 and Rs. 10 per month respectively, excluding GST.

"We have reduced these charges taking into account the feedbacks and sentiments of our customers. Bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations. Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied," said P K Gupta, MD - Retail and Digital Banking, SBI.

The bank contains Rs. 41 crores savings bank accounts, out of which 16 crore accounts under the Prime Minister's Jan Dhan Yojna (PMJDY), and Basic Savings Bank Deposit Account (BSBD) and of pensioner/minors/social security benefit holders were already exempted. In addition, students up to the age of 21 years are also exempted.

SBI also clarified that customers have the option of converting the regular savings bank account to a BSBD account free of charge, in case they desire to avail basic savings bank facilities without being subject to maintenance of AMB.

The aforementioned revision in AMB is expected to benefit 25 crore customers.