SBI Reduces Minimum Average Balance

The issue of maintenance of Monthly Average Balance (MAB), in Savings Account with State Bank of India, had become a big issue, with hue and cry across from public and other media.  Several representations and requests came from several quarters for a reduction in the bank’s MAB.

Succumbing to the heavy pressure across, SBI has slashed charges on non-maintenance of MAB by 20-50 per cent across different customer categories.  Following categories of customers will be exempted from maintaining the MAB.

  1. Pensioners
  2. Beneficiaries of social benefits from Government
  3. Minor Accounts ( upto 18 years of age)

Accounts coming under Financial Inclusion category, including Jan Dhan Accounts have not been brought under the purview of charges at any point of time. The chart of MAB to be maintained is as under:

Sl No Region Monthly Average Balance
1 Metro Rs. 3000  (reduced from Rs. 5000)
2 Semi Urban Rs. 3000
3 Rural Rs. 1000

Also, there is revision in charges for non maintainence of MAB.

a) At Semi-urban and Rural centres, it ranges from Rs. 20 to Rs. 40.
b) At Metro Centres it ranges from Rs. 30 to Rs. 50.

The bank has a deposit franchise with over 420 million Savings Bank accounts.  Of these, 130 million accounts fall under PMJDY/BSBD which are exempted from maintenance of MAB.  The new revision would benefit another 50 million customers.

Author: Admin Bankedge

No Comments

Post a Reply