SBI reduces the Minimum Balance penalty
Posted on: 13/Mar/2018 4:10:00 PM
The State Bank of India has reduced the penalty imposed for failure to keep the minimum balance amount by 75%.
Once the penalty system was imposed by the bank for failure to keep the minimum prescribed balance in the savings account, the public has been put to great hardships.
Subsequently, the State Bank of India, after obtaining some suggestions and recommendations from the public as well as the experts in the field, has come forward to reduce this penalty.
The revised penalty rates will be effective from 1st April. Around 25 Crores customers will benefit from this reduction.
The revision
Earlier, a penalty of Rs. 50 per month was being imposed for the savings account holders both metro and city bank branches in case of failure to keep the minimum prescribe balance amount. Now, after the complaints from the customers, SBI has reduced this to Rs. 15.However, GST will also be collected along with this penalty.
For the savings account holders in suburban and Panchayat bank branches, a monthly penalty of Rs. 40 was being imposed for eh failure to keep the minimum bank balances. Now, this has been reduced to Rs. 12/ A GST of Rs. 10 will also be collected in addition.
8 months after the penalty system for failure to keep the minimum balance was imposed, the news went in circulation that SBI had collected a whopping Rs. 1771 Crores through these penalties levied on the middle-class and economically backward public. This met with a huge protest from various fronts.
The net profit of SBI for the quarter July-September was only Rs. 1581.55 Crores. This is much lower than the purported amount of penalty collected as Rs. 1771 Croes – this led to a furore among the public. Subsequently, SBI came forward to reconsider his.
After the revision, the savings account holders in the metro and city branches must keep an average monthly minimum balance of Rs. 3000. The savings account holders in suburban and Panchayat areas must keep a monthly average balance of Rs. 2000. The savings account holders in the rural and village areas must keep a minimum monthly average of Rs. 1000.
