SBI reduces charges on non-maintenance of minimum balance by 75%

SBI reduces charges on non-maintenance of minimum balance by 75%

It slashed service charges for non-maintenance of AMB by 20-50%.

Now, The charges for non-maintenance of AMB customers in Metro cities (Mumbai, Delhi, Kolkata) and Urban centres have been reduced from 50Rs per month to 15Rs per month.

For semi-urban and rural centres, the charges have been reduced from Rs 40 per month plus GST to Rs 12 and Rs 10 per month plus GST, respectively, the bank said in a release.

On reduction of charges, P K Gupta, MD - Retail & Digital Banking, SBI said, "We have reduced these charges taking into account the feedbacks and sentiments of our customers". He added that depositors had the option to convert their regular savings accounts to basic savings deposit accounts, which do not fine holders if they do not maintain a minimum balance every month.

In a good news, shifting to BSBD account is also free of charges at SBI. SBI had earlier said, "On an average balance of Rs 3,000 in the metro, SBI earns Rs 6 only per month, whereas for a minimum balance of Rs 1,000 in rural, bank earns Rs 2 per month which is meagre when compared to the services offered".

The move will eat into the fee income of the bank, which had reported the first quarterly loss in 20 years, as it had to make huge provisions for bad loans. Both these accounts do not have minimum balance requirements. The Bank has an exceptionally solid store establishment having 41 crores Savings Bank accounts out of which 16 crore accounts under PMJDY/BSBD and of beneficiary/minors/standardized savings advantage holders were at that point exempted.

SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees.

SBI's penalty on non-maintenance of AMB has been defended and justified by chairman Rajnish Kumar and his predecessor Arundhati Bhattacharya. Currently, the charges are in the range of Rs20-40.

The decision comes after the lender faced severe criticism that the bank earned more from penalising customers who failed to maintain AMB than their July-September quarter net profit.

Related Articles

  • Millennial 26-30 railcard website crashes as thousands scramble for discount travel

    Millennial 26-30 railcard website crashes as thousands scramble for discount travel

    Valid for one year and costing £30, the railcards are digital only and stored in an app on the user's phone. Many passengers have expressed their frustration on social media at being unable to buy the cards.
    CIA Director to replace Rex Tillerson as Secretary of State

    CIA Director to replace Rex Tillerson as Secretary of State

    The Texas graduate in civil engineering worked 41 years at Exxon, rising from an engineer to become CEO in 2006. Tillerson had just returned from a shortened trip to Africa hours before Trump's announcement.
    Spring statement 2018: the chancellor's key points at a glance

    Spring statement 2018: the chancellor's key points at a glance

    Chancellor Philip Hammond has revealed what shape the United Kingdom economy is in a year on from Brexit. Hammond said the education secretary will release up to £80m to help small firms take on apprentices.
  • Tiger Woods to captain 2019 Presidents Cup team

    Tiger Woods to captain 2019 Presidents Cup team

    Els, a four-time major victor , takes over from Nick Price who has guided the Internationals at the last three Presidents Cups. The pair is expected to be announced as captains Tuesday at the Arnold Palmer Invitational.
    Andrew Norwell to sign with Jaguars

    Andrew Norwell to sign with Jaguars

    Carolina's immediate contingency plan at left guard includes second-year player Taylor Moton and versatile center/guard Tyler Larsen.

    Korea Electric Power (KEP) Given Daily News Impact Rating of 0.18

    It offers Glybera, a gene therapy product for the treatment of patients with orphan lipid disorder lipoprotein lipase deficiency. It has underperformed by 21.16% the S&P500. (NYSE: AEP ) earned "Hold" rating by RBC Capital Markets on Sunday, September 3.
  • Maoist Attack: 9 CRPF personnel killed in Chhattisgarh

    Maoist Attack: 9 CRPF personnel killed in Chhattisgarh

    A statement issued by the CRPF said that the encounter took place between the CRPF's 208 CoBRA (Commando Battalion for Resolute Action) battalion and Maoists at 8 a.m. today.
    AAP MP moves Private Member's Bill to stop sealing in Delhi

    AAP MP moves Private Member's Bill to stop sealing in Delhi

    This is published unedited from the PTI feed . "Today I have moved a Private Member's bill". The BJP did not take part in it.
    Mourinho 'doesn't know' if Pogba will face Sevilla

    Mourinho 'doesn't know' if Pogba will face Sevilla

    That is a marked contrast to last season when they finished sixth and had to win the Europa League to earn a place back in the continent's elite club competition.
  • Allen Robinson Intends to Sign With Bears in Free Agency

    Allen Robinson Intends to Sign With Bears in Free Agency

    Trubisky had a solid season for the Bears a year ago , completing 59.4 percent of his passes for 2,193 yards and seven touchdowns. Callahan has started 19 games in three seasons since signing with the Bears after going undrafted out of Rice in 2015.
    Delhi: Man posing as Uber driver locks woman inside cab, harasses her

    Delhi: Man posing as Uber driver locks woman inside cab, harasses her

    When the cab arrived, it was carrying a white number plate instead of yellow commercial number plate, said police. The woman managed to escape from the auto when the vehicle slowed down at a CNG station near GTK depot.

    Myths about learning English

    For example, you can fulfill the exercise online and it’s better than to write it and it shows your mistakes automatically. And again- the motivation is the key! The myth#3: the residence in another country guarantees you the language learning.