SBI to increase minimum balance requirement on savings accounts

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Starting April 1, 2017, State Bank of India’s (SBI) monthly average balance (MAB) will be increased 10 fold to Rs.5,000, depending on the area of the bank branch. This move will affect 31 crore account holders in the country.

Currently, the MAB required across all SBI bank branches is Rs.500 for an account without cheque book facility and Rs.1,000 for an account with cheque book facility.

State Bank of India
SBI to increase monthly average balance 10 fold

SBI has decided to set different MABs for rural, semi-urban, urban and metro areas.

The monthly average balance for metro bank branches in Delhi, Bangalore, Mumbai, Kolkata, Chennai and Hyderabad will be raised to Rs.5,000. A penalty starting from Rs.50 up to Rs.100 will be imposed for not maintaining the minimum balance.

The MAB will be raised to Rs.3,000 and Rs.2,000 for urban and semi-urban branches respectively. The MAB for rural bank branches will be raised to Rs.1,000 with a penalty starting from Rs.20 up to Rs.50 for non-maintenance of the same.

The government on March 6, 2017 asked SBI to reconsider the penalty charges to be imposed on non-maintenance of MAB as well as on cash transactions and ATM withdrawals.

SBI reintroduced penalties on non-maintenance of MAB after a period of 5 years.  For current accounts, the penalty has been increased to as much as Rs.500.

SBI’s five associate banks – State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Travancore (SBT), State Bank of Bikaner and Jaipur (SBBJ) and State Bank of Hyderabad (SBH) are set to merge with SBI on April 1, 2017. Upon this merger, SBI will have Rs.37 lakh crore in combined assets and 58,000 and 22,500 in combined ATMs and bank branches, respectively. The combined customer base of SBI will exceed 50 crores.

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