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SBI Savings Bank Account: How To Avoid Fine Under Minimum Balance Rules

8 May, 2017 10:16 AM
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SBI Savings Bank Account: How To Avoid Fine Under Minimum Balance Rules

Do you have an SBI account? SBI or State Bank of India savings bank account customers are required to maintain a monthly average balance. Failure to maintain an average balance as prescribed by India's largest bank SBI will attract a penalty, which varies depending upon where the customer holds the account. State Bank of India (SBI) has divided the penalty applicable in case of non-compliance with its minimum balance or "monthly average balance (MAB)" requirements into four categories of savings bank accounts - rural, semi-urban, urban and metro.

Monthly average balance or MAB of a SBI savings bank account is the average of daily balances in the account in a month.

SBI has said its savings bank account holders in rural, semi-urban, urban and metro branches need to maintain an average balance of Rs 1,000, Rs 2,000, Rs 3,000 and Rs 5,000, respectively.

At SBI metro branches, for example, savings bank account holders - who need to maintain a monthly average balance of Rs 5,000 from April 1 - will need to pay a charge of Rs 50 in case of an MAB between Rs 2,500 and Rs 5,000, Rs 75 in case it is between Rs 1,250 and Rs 2,500, and Rs 100 in cases where it is up to Rs 1,249, according to the bank. The charges exclude service tax, which will be levied in addition to the given amounts.

State Bank of India classifies its branches spanning a multitude of states and districts into the four categories. A link shared by SBI on microblogging site Twitter leads to a document containing a population group-wise (rural, semi-urban, urban or metro) list of its branches.

Also read: Paytm Payments Bank Launched: Here's What It Means for Paytm Users

Source: profit.ndtv.com

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