State Bank of India or SBI has said it is exempting its customers holding certain account types from maintenance of average monthly balance. Such accounts include small savings bank accounts, basic savings bank accounts and Jan Dhan accounts, or the accounts opened under the government's financial inclusion scheme Pradhan Mantri Jan-Dhan Yojana or PMJDY. This was said in a tweet by SBI, which recently adopted a new brand identity after merger with five associate banks and Bharatiya Mahila Bank. SBI had earlier decided to increase the minimum balance required for maintaining savings accounts from April 1, hitting 31 crore depositors including pensioners and students.
Besides, State Bank of India is also offering corporate salary accounts without the requirement to maintain minimum monthly balance.
Account holders of the following types of accounts are exempt from requiring to maintain an average monthly balance: pic.twitter.com/61U8QNu7xR— State Bank of India (@TheOfficialSBI) April 11, 2017
The monthly average balance (MAB) requirement was increased to as high as Rs 5,000 for branches in six metros. In case of non-compliance, savings bank account holders will invite a penalty ranging from Rs 20 (in rural branches) to Rs. 100 (in metro cities), as per the bank's website. (Read more)
Here are some of the other features SBI offers under these accounts, according to its website.
Small savings bank account
SBI's small savings bank account has a maximum balance limit of Rs 50,000 and offers a rate of interest applicable to savings bank accounts. Account holders get an ATM-cum-Debit card, issued free of cost and without any annual maintenance charge, as per the SBI website. All credits in a financial year should not aggregate to more than Rs 1 lakh and Rs 10,000 in case of withdrawals and transfers.
Basic savings account
SBI's basic savings account has no minimum balance or maximum balance limits. Holders of this account type "will not be eligible to open any other Savings Bank Account" at the bank. Such an account - in case the customer already holds one - will have to be closed within 30 days of opening the basic savings bank deposit account.
Corporate salary package
SBI's salary account under corporate salary package offers many benefits to the employer and the employee alike. This account type reduces employer's paperwork and salary administration cost. Employees get free internet banking and mobile banking services, among other features, as per the SBI website.Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
