SBI or State Bank of India is charging a fine on savings bank account customers not meeting the average monthly balance requirement. The amount of penalty for non-compliance with the monthly average balance or MAB requirement is based on customer location - metro, urban, semi-urban and rural. This was said by India's largest bank SBI on Twitter while specifying various ranges according to which it will levy the charges. Charges levied for not maintaining the minimum balance depend upon how much the average balance in the account is below the agreed minimum, said SBI, which has introduced minimum balance requirement in savings accounts from April 1. SBI also unveiled a new identity after merging its operations with six other banks recently.
A regular review of your account will help you to ensure the average monthly balance is maintained and avoid the minimal charges. pic.twitter.com/bZSwWRW134— State Bank of India (@TheOfficialSBI) April 22, 2017
What is minimum balance requirement?
SBI savings bank account customers need to maintain a monthly average balance or MAB, which is the average of daily balances in the account during the month.
When do SBI savings bank account customers pay this charge?
Failing to maintain the monthly balance as specified by the bank will attract a fee.
What to do?
"A regular review of your account will help you to ensure the average monthly balance is maintained and avoid the minimal charges," State Bank of India (SBI) said in another tweet.
How much fine do I need to pay?
Banking behemoth SBI has divided its customers into four categories: metro, urban, semi-urban and rural.
For metro customers:
SBI requires its savings bank account customers in metros to maintain a monthly average balance of Rs 5,000.
In case the monthly average balance of an SBI savings bank account holder comes out to be between Rs 2,500 and Rs 5,000 - a shortfall of less than 50 per cent, a charge of Rs 50 plus service tax will be levied, SBI said. For those with a shortfall of between 50 and 75 per cent (MAB from Rs 1,250 to Rs 2,500), a fee of Rs 75 plus service tax will be charged, and Rs 100 plus service tax for those keeping an average less than Rs 749 (more than 75 per cent shortfall).
Shortfall SBI charges plus service tax Over 75% Rs 100 50-75% Rs 75 Till 50% Rs 50
Shortfall SBI charges plus service tax Over 75% Rs 80 50-75% Rs 60 Till 50% Rs 40
Shortfall SBI charges plus service tax Over 75% Rs 75 50-75% Rs 50 Till 50% Rs 25 not required to maintain a minimum balancebasic savings account
Shortfall SBI charges plus service tax Over 75% Rs 50 50-75% Rs 30 Till 50% Rs 20 Charges levied for not maintaining the minimum charges depend upon how much the average balance in the account is below the agreed minimum. pic.twitter.com/Sd9rDTfMHM— State Bank of India (@TheOfficialSBI) April 21, 2017
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