SBI lowers minimum balance charges

State Bank of India has lowered charges for non-maintenance of minimum balance for customers, following stakeholders' feedback. The monthly charges, exclusive of the goods and services tax, have been reduced to ~15 from ~50 in metro and urban centres and ~12 and ~10 from ~40 for semiurban and rural centres.

State Bank of India (SBI), the country’s largest lender, has slashed charges for non-maintenance of the average minimum balance for customers following feedback from stakeholders.

The monthly charges, exclusive of the goods and services tax (GST), have been reduced to ~15 from ~50 in metro and urban centres and ~12 and ~10 from ~40 for semiurban and rural centres. The revised charges will be effective from April 1, 2018. These charges will be applicable if a customer fails to maintain the minimum monthly balance specified by the bank.

“We have reduced these charges taking into account the feedback and sentiments of our customers. Our bank has always focused on keeping the interests of its customers first, and this is one of our many efforts towards fulfiling customer expectations,” said P K Gupta, managing director — retail & digital banking, SBI.

The bank had substantially hiked its minimum balance requirement, effective April last year, which saw a backlash from customers. The bank later reduced the AMB requirement to ~3,000 from the earlier ~5,000, effective October 2017.

Bank closed 4mn savings accounts in Apr-Jan

SBI has closed as many as 4.1 million savings accounts during April-January in the current financial year for not maintaining the average monthly balance. “Due to provisions of penalty on non-maintenance of minimum balance, the bank has closed 41.16 lakh (4.1 mn) savings accounts between April 1, 2017 and January 31, 2018," the bank replied to an RTI query filed by Chandra Shekhar Gaud from Neemuch in Madhya Pradesh.