In view of growing consumer complaints against increase in banking charges, the State Bank of India – India’s largest commercial bank – on Monday revised the service charges for non-maintenance of monthly average balance (MAB) in bank accounts and also lowered the MAB requirement for its customers in metro cities. Pensioners and minors have also been exempted from the minimum balance requirement. Here are five things to know about how the SBI customers will benefit from this development:
1. The requirement for minimum average balance in metro centres now stands reduced to Rs 3,000 from Rs 5,000 earlier, similar to the requirement in urban centres.
2. For non-maintenance of MAB, the charges have been revised downward ranging from 20% to 50% across all population groups and categories. The charges at semi-urban and rural centres range from Rs 20 to Rs 40 and at urban and metro centres from Rs 30 to Rs 50. The revised MAB requirement and charges will become applicable from the month of October 2017.
3. Accounts of pensioners, minors and beneficiaries of social benefits from the government have been exempted from the minimum balance requirement. This is in addition to the already exempted categories under PMJDY accounts and Basic Savings Bank Deposits Accounts (BSBD).
4. The following categories of savings bank accounts are excluded from the minimum balance requirement:
i) Financial Inclusion Accounts
ii) Basic Savings Bank Deposit Accounts
iii) Small Accounts
iv) Phela Kadam and Pheli Udaan accounts.
v) Minors up to the age group of 18 (Primary Account Holder)
vi) Pensioners, all categories, including recipients of social welfare benefits
5. SBI has a very strong deposit franchise having 42 crore savings bank accounts, out of which 13 crore accounts under PMJDY / BSBD were already exempted. The above revision is likely to benefit another 5 crore account holders. SBI customers also have the option of converting the regular savings bank account to Basic Savings Bank Deposits (BSBD) account, free of charge, in case they desire to avail basic savings bank facilities without being subject to maintain minimum average balance.