The State Bank of India (SBI) Tuesday reduced charges for non-maintenance of average minimum balance (AMB) in savings accounts by up to 75 per cent. The revised charges will be effective from April 01, 2018 and will benefit more than 25 crore customers.
The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month plus goods and services tax (GST) to Rs 15 per month plus GST. Likewise, for semi-urban and rural centres, the charges have been slashed from Rs 40 a month plus GST to Rs 12 and Rs 10 plus GST charges, respectively. SBI’s managing director PK Gupta, in a press release, said: “The bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customers’ expectations.”
The minimum balance for SBI savings accounts is Rs 3,000 for accounts in urban and metro areas. SBI also provides its customers the option of shifting from a regular savings bank account to basic savings bank deposit account (BSBD) on which no charges are levied. In October, the SBI had begun charging a whopping 20-50 per cent service charge for not maintaining monthly average balance. The move had invited widespread criticism.