SBI’s New Rules Explained in 10 Points, As earlier SBI, who is the biggest lender in the country, announced a good news for the customers holding savings accounts in the bank by reducing its monthly average balance. This means that customers not maintaining sufficient balance in their saving account will now have to pay low charges. In press, the SBI said it reduced the Monthly Average Balance requirement in metro cities and slashed charges for non-maintenance by up to 50 percent. SBI further stated that the Saving Accounts of Pensioners, Beneficiaries of social benefit from the government and the accounts of minors will be exempt from maintaining monthly average balance.
10 things to know about SBI’s revised
Monthly Average Balance Rules
- For the Purpose of MAB, the accounts are divided into 4 branches which are- Metro, Urban, Semi-Urban and Rural. Earlier Rs,5000/- was the monthly average balance required in metro cities. Now it is reduced to Rs.3000/-
- For other 3 categories, the requirement of the amount in saving bank is- Urban, Semi-Urban and Rural branches- Uncharged at Rs. 3000/-, Rs.2000/- and Rs.1000/-.
- Earlier charges for non- maintenance of balance was Rs.50/- to Rs.100/- but now it has been reduced to Rs.30/- to Rs. 5o/-
- Earlier in Urban branch charges for non- maintenance of balance was Rs.40/- to Rs.80/- but now it has been reduced to Rs30/- to Rs. 5o/-
- Earlier for semi- Rural and Rural branch charges for non-maintenance of balance was Rs.25/- to Rs.75/- for Semi- Urban. but now it has been reduced to Rs20/- to Rs. 5o/- for Semi-Rural and Rural
- All the above changes will be applicable from October 2017.
- There are some savings bank accounts which are excluded from minimum average balance requirement they are Financial Inclusion accounts, basic saving bank deposit accounts, small accounts, Pehla Kadam and Pehli Udaan accounts, accounts for minors up to the age group 18 (Primary account holder), pensioners and recipients of Social Welfare benefits.
- SBI also clarified that those who want to avoid paying the charges for non-compliance with the new monthly average balance rules can convert their normal savings bank account to the basic savings bank deposit account without any charges.
- Services like Receipt/Credit of money through NEFT/RTGS, deposit/collection of the cheque drawn by central/ State government, activation of inoperative accounts and account closure, the charges are nil in the basic saving bank deposit account.
- SBI has 42 Crore saving bank accounts, out of which 13 crore accounts come under Jan Dhhan and basic saving bank deposit accounts, Which do not attract any charges for non-compliance with MAB rules.