The new rates on minimum balance charges will be effective from April 1, 2018. The charges at rural centres and semi-urban were also changed to Rs 20-40 from Rs 25-75. Likewise, for semi-urban and rural centres, the charges have been slashed from Rs 40 a month plus GST to Rs 12 and Rs 10 plus GST charges, respectively.
The charges for non-maintenance of AMB for clients in Metro and Urban centers have been diminished from a greatest of Rs 50 every month to Rs 15 every month.
"We have reduced these charges taking into account the feedbacks and sentiments of our customers".
In a press conference, SBI said, the minimum charges were reduced based on the feedback received from various stakeholders.
The SBI offers an interest rate of 3.5 per cent on saving bank deposits of up to Rs 1 crore and 4 per cent on deposits of over Rs 1 crore.
Including SBI, other banks across the country also charge penalties if there are not enough funds in the account. Within a particular category, the bank levies charges depending on the shortfall.
Confused about how the monthly/quarterly minimum average balance is calculated?
According to media reports, this decision was taken following some criticism that the bank earned Rs 1,771 crore in just eight months from depositors who failed to maintain balance. Let's assume he had a balance of Rs 10,000 in his savings account on February 1, but withdrew Rs 8,000 on Feb 8. The bank clarified that customers always had the option of converting the regular savings bank accounts to basic savings bank account (BSBD account) to avoid incurring charges for non-maintenance of account balance.
Jan Dhan Yojana accounts, basic savings bank deposits accounts (BSBD), pensioners, beneficiaries of social benefits from the government and accounts of minors are exempted from complying with the minimum balance requirement. Also, accounts holders under the age of 21 were exempted. The amount was also almost half of the Rs 3,586 crore the bank earned as net profit from April to September.