SBI reduces penalty
Posted on: 05/Jan/2018 4:01:44 PM
After a few days of reports that emerged stating that the largest lender in India has collected Rs 1,771 crore as penalty towards non-maintenance of monthly minimum balance, here is yet another move by the State Bank of India where it has taken another initiative at the minimum balance requirement which is at present Rs 3000 in the urban regions.
As per reports, SBI is likely to shift its monthly average balance to a quarterly balance maintenance requirement, thus bringing down the balance requirement to Rs 1000 in metro cities. This shall be collected in the period April to November 2017.
There are media reports stating that a total of Rs 2320.96 was collected during FY18 towards non-maintenance of minimum balance.
Following SBI, now, Punjab National Bank has also recorded to have collected Rs 97.34 crore in April to November period. The Central Bank of India has obtained Rs 68.67 crore and Canara Bank has recorded a total of Rs 62.16 crore, say reports.
There were earlier announcements regarding minimum account balance maintenance in savings account. Later, a few changes were made in the penalty towards non-maintenance of account balance. The charge towards non-maintenance of specific account balance were also changed.
The monthly average balance or MAB was also increased in April 2017. It was raised to Rs 5000 for branches across 6 metros. The penalty was raised to Rs 100 in metro cities. Until March 31, 2017, the monthly average balance for savings account was Rs 500 for accounts that don’t have cheque book and Rs 1000 for those with cheque books.
Penalties that SBI charges for non-maintenance of monthly charges based on regions are listed below
Metro cities
The minimum balance for SBI accounts maintained with metro cities is Rs 3000. This should be the monthly average balance in savings account. When this is reduced to Rs 2,999 or Rs 1,500, a charge of Rs 30 will have to be paid as penalty. When the balance by month end reduces to anywhere of the range Rs 1,499 to Rs 750, a penalty of Rs 40 will be applicable. And Rs 50 will be charged towards MAB lesser than Rs 750. The earlier penalties were Rs 50, Rs 75 and Rs 100.
Urban regions
The monthly average balance needed to be maintained in urban regions in India is Rs 3000. For urban area customers, the penalties and conditions remain the same as that of metro cities.
Semi-urban regions
In semi-urban areas, the MAB is Rs 2000. Customers who maintain savings account with SBI branches in semi-urban areas will have to pay Rs 20 when their MAB lies between Rs 1999 and Rs 1000. When the MAB falls between Rs 999 and Rs 500, a penalty of Rs 30 is applicable. For customers who have lesser than MAB of Rs 500, the penalty is Rs 40.
Rural areas
Rs 1000 is the minimum balance supposed to be maintained in rural areas. For semi-urban clients, the penalties for rural customers is set as Rs 20 for MAB between Rs 999 and Rs 500, and Rs 30 for MAB between Rs 499 and Rs 250, and Rs 40 for MAB between Rs 249.
No MAB limits
- There are a few groups that are also exempted from these MAB restrictions. This includes
- Financial inclusion accounts
- Basic savings bank deposit accounts
- Phela Kadam and Pheli Udaan accounts
- Small accounts
- Minors aging lesser than 18
- Pensioners including those who receive social welfare benefits
