■ The revised MAB requirement and charges will become applicable from October, the bank said in a statement.
✔ The country’s largest lender State Bank of India on Monday lowered the minimum average monthly balance (MAB) requirement in a savings account to 3,000 from 5,000, in addition to revising downwards penalties for non-adherence.
✔ The revised MAB requirement and charges will become applicable from October, the bank said in a statement.
✔ The public sector lender also decided to exempt pensioners, beneficiaries of social benefits from government and minors from the requirement of minimum balance in savings account.
✔ In April, the bank had re-introduced MAB and charges for non-maintenance of balance after a gap of five years.
✔ In metropolitan areas the minimum balance requirement was 5,000. For urban and semi-urban branches, it was fixed at 3,000 and 2,000, respectively, and for rural branches it was 1,000.
✔ Last week, managing director for national banking group, Rajnish Kumar, had said the lender was reviewing the average monthly balance requirement.
✔ The lender also revised downwards the penalty for non-maintenance of MAB. “For non-maintenance of MAB, the charges have also been revised downwards ranging from 20-50% across all population groups and categories,” the bank said.
✔ Now, the charges at semi-urban and rural centres range from 20 to 40 and at urban and metro centres from 30 to 50, the bank said.
✔ Earlier, in the metros, the bank was charging 100 plus GST if the balance fell below 75 % of the MAB of 5,000. If the shortfall was 50% or less, the penalty charge was 50 plus GST.
✔ Any shortfall in maintaining minimum average balance in rural areas was attracting a penalty in the range of 20 to 50 plus GST.
✔ The bank reiterated that basic savings bank deposit and PM’s Jan-Dhan accounts are not required to maintain the minimum balance. The lender has 42 crore savings bank accounts of which 13 crore belong to this category.
✔ “It has now been decided to exempt the pensioners, beneficiaries of social benefits from government and accounts of minors. The revision is likely to benefit another 5 crore account holders,” the bank said.