State Bank of India on Tuesday said it exempts certain category of account from levy of charges for non maintenance of monthly average balance (MAB). These accounts include Prime Minister’s Jan Dhan Yojna (PMJDY) accounts, Small accounts and
Basic Savings Bank Deposit (BSBD) accounts, Pensioners, minors and all social beneficiary accounts. The bank’s statement comes a day after The Indian Express reported that the SBI collected Rs 1,771 crore as charges from customers who did not maintain MAB. In its statement on Tuesday, the SBI did not comment on collections from charges on accounts not maintaining MAB.
The finance ministry data showed the bank charged Rs 1,771.67 crore from customers on account of non-maintenance of minimum average balance during April-November in the current financial year. The charges collected during the April-November period are more than the quarterly net profit of Rs 1,581.55 crore reported by the state-owned bank in July-September and nearly half the Rs 3586 net profit earned during six month period April-September.
“On an average balance of Rs 3000 in Metro, SBI earns Rs 6 only per month whereas for a minimum balance of Rs 1000 in rural, banks earns on Rs. 2 per month which is meagre when compared to the services offered and corresponding costs incurred by the bank (Free Cheque Book, 8 free ATM transactions, free branch transactions),” the SBI said.
After a gap of six years, the MAB charges were reintroduced from 1st April, 2017 which was subsequently revised downwards from 1st October, 2017 post receiving feedback from its stakeholders, the bank said.
After SBI, Punjab National Bank recorded the highest collection of Rs 97.34 crore through levy of such charges during the April-November period, followed by Central Bank of India’s mop up of Rs 68.67 crore and Canara Bank’s Rs 62.16 crore.