Huge relief for SBI customers! No minimum balance penalty, SMS charges on all savings accounts

The State Bank of India (SBI) has given a huge relief to its customers by announcing that it will not levy a penalty on those who fail to maintain a minimum balance in their account. India’s largest lender also waived off SMS charges. The new rules will benefit all the savings account holders of the State Bank of India.  

"Good news for SBI Savings Account holders! Now you don't have to pay charges for SMS service and non-maintenance of monthly average balance," the SBI tweeted on Tuesday. SBI has over 44 crore savings accounts. 

Is this facility for all SBI savings accounts that have internet banking and cheque book facilities? In reply to this question, SBI in a tweet said the waiver of charges is all applicable for all accounts. 

Despite this, the customers are also advised to maintain a minimum balance in their account. This makes them eligible for other benefits. SBI offers higher number of free ATM transactions to those who maintain a higher balance in their savings accounts. For example, account holders who maintain balance of over Rs 1 lakh get the benefit of unlimited number of free ATM transactions in a month.

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Earlier this year, the bank had announced that it will waive charges for non-maintenance of average monthly balance (AMB) for all savings bank accounts. Earlier, SBI savings bank customers had to maintain average monthly balance of Rs 3000, Rs 2000 and Rs 1000 in metro, semi urban and rural areas respectively.  

The bank used to levy a penalty of Rs 5 to Rs 15 plus taxes on non-maintenance of average monthly balance.