India’s largest bank State Bank of India (SBI) has announced that it is lowering its minimum balance limit from Rs.5,000 to Rs.3,000 for accounts in metropolitan cities. It also stated that it is lowering its minimum balance maintenance charges for SBI savings accounts by about 20% to 50% in various categories. SBI earlier announced that it is reviewing its charges for non-maintenance of monthly average balance (MAB) after getting feedback from its customers.
The minimum balance limit is lowered only for account holders in metros. SBI savings accounts in urban areas will continue to have minimum balance limit of Rs.3,000. The minimum balance limit for account holders in semi-urban and rural areas also will continue to remain the same at Rs.2,000 and Rs.1,000 respectively.
As per the new changes, the charges for non maintenance of MAB in rural and semi-urban areas will range from Rs.20 to Rs.40. For metros and other urban areas, the charges will range from Rs.30 to Rs.50 for non maintenance of MAB.
The government has removed charges for pensioners, minors, and account holders who receive social benefits from the government. Accounts coming under the Prime Minister’s Jan-Dhan Yojana and Basic Savings Bank Deposits (BSBD) were already exempted from these charges.
SBI has a massive customer base with more than 40 crore savings accounts. Among these accounts, about 27 crores are regular savings accounts that do not fall under any government schemes. This revision will mainly benefit these SBI savings account holders. SBI has also announced that savings account customers can convert their regular accounts to BSBD accounts anytime without incurring any additional charges.
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