SBI may cut minimum balance requirement for savings accounts

State Bank of India, the largest bank in the country, is likely to slash minimum balance requirement for saving accounts. SBI plans to reduce the minimum deposit by 75 per cent. Currently, It is Rs.3000 in metro areas, Rs. 2,000 in semi-urban areas and Rs. 1,000 in rural areas. Similarly, SBI is also changing the requirement from monthly average balance to quarterly average balance.

Bank is trying to reduce this monthly minimum balance amount to Rs 1,000, as it faced negative impact on the fees collected from accounts not maintained with minimum balance. SBI has suffered with a severe setback after submitting details of monthly penalty amounts to Finance Minister

SBI’s Minimum balance limits penalty is high compared to public sector banks. Recently, a study report released by the Bombay-IIT professor indicated that the charges imposed by banks on accounts not maintained with Minimum Balance are inappropriate. SBI has a total of 40.5 crore savings account customers.

After six years break on April 1, 2017, SBI has revised the average monthly fees. Shortly after several criticisms, the charges were reduced from October 1.

Current charges
Metro Areas – Rs.3000

If the balance limit is between Rs. 2999 and Rs. 1500, penalty will be Rs. 30.

If the balance limit is between Rs. 1499 and Rs. 750, penalty will be Rs. 40.

If the balance limit is less than Rs. 750, penalty will be Rs.50.

Semi-urban areas – Rs.2000

If the balance limit is between Rs. 1999 and Rs. 1000, penalty will be Rs. 20.

If the balance limit is between Rs. 999 and Rs. 500, penalty will be Rs. 30.

If the balance limit is less than Rs. 500, penalty will be Rs.40.

Rural areas: Rs.1000

If the balance limit is between Rs. 999 and Rs. 500, penalty will be Rs. 20.

If the balance limit is between Rs. 499 and Rs. 250, penalty will be Rs. 30.

If the balance limit is between Rs. 249, penalty will be Rs.40.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here