SBI slashes penalty for not maintaining minimum balance from Rs 50 to Rs 15

New Delhi, Mar 13: SBI on Tuesday said that it has reduced the penalty for non maintenance of the stipulated average minimum balance (AMB) in a customer’s account.
The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month to Rs 15, excluding GST.
Similarly, the charges for semi-urban and rural centres have been revised from Rs 40 to Rs 12 and Rs 10 respectively.
The bank, in a press release, said the cut in fines will benefit 250 million account holders out of its 410 million savings account holders.
The largest Indian bank suffered a huge backlash last December when finance ministry data revealed that it netted a windfall of Rs 17.72 billion, more than its second-quarter profit, from customers for non-maintenance of monthly average balance in savings accounts in eight months of 2017-18.
While SBI’s current Rs 3,000 minimum balance requirement for urban areas is highest among all PSBs, it is the lowest compared to all large private banks.
State Bank of India has close to 405 million savings account customers.
SBI, after a gap of six years, had reintroduced the monthly average balance (MAB) charges from April 1, 2017. After criticism by customers, it reduced those charges with effect from October 1, 2017.