SBI minimum balance charges slashed; check out how you benefit

SBI minimum balance charges: The State Bank of India (SBI) on Tuesday announced up to 75 per cent reduction of charges for non-maintenance of Average Minimum Balance (AMB) in savings accounts, effective April 1. The charges for non-maintenance of AMB for customers in metro and urban centers have been reduced from a maximum of Rs 50 to Rs 15 per month, excluding Goods and Services Tax (GST). Similarly, for semi-urban and rural centers, the charges have been reduced from Rs 40 to Rs 12 and Rs 10 per month respectively, excluding GST.  "We have reduced these charges taking into account the feedbacks and sentiments of our customers. Bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations. Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied," said P K Gupta, MD - Retail and Digital Banking, SBI.

Customers are required to maintain Rs 3000 average monthly balance in urban areas, Rs 2000 semi-urban, and Rs 1000 in rural areas. The bank contains Rs 41 crores savings bank accounts, out of which 16 crore accounts under the Prime Minister's Jan Dhan Yojna (PMJDY), and Basic Savings Bank Deposit Account (BSBD) and of pensioner/minors/social security benefit holders were already exempted. In addition, students up to the age of 21 years are also exempted.

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SBI also clarified that customers have the option of converting the regular savings bank account to a  Basic Savings Bank Account (BSBD) free of charge, in case they desire to avail basic savings bank facilities without being subject to maintenance of AMB.

The revision in AMB is expected to benefit 25 crore customers.