SBI Shuts 41.2 Lakh Saving Accounts For Not Keeping Minimum Balance

These accounts are exempt from charges for non-maintenance of a minimum balance. These revised charges will be effective in India from 1st April 2018.

In a press conference, SBI said, the minimum charges were reduced based on the feedback received from various stakeholders. For semi-urban and rural centres, the penalty has been reduced from Rs 40 to Rs 12 a month.

In semi-urban, SBI will charge a minimum of Rs.7.50 and the maximum charge of Rs.12 plus GST.

The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from Rs 50 to Rs 15 a month.

This choice takes extreme feedback that the bank earned strong pay of Rs 1,771 crore in only 8 months from contributors who neglected to keep up the balance in their bank accounts. He also said that the bank believes in keeping its customers and their interest first as this is going to be one of their many efforts towards fulfilling the expectations of their customers.

Meanwhile, an RTI query revealed that SBI has closed as many as 41.16 lakh savings accounts between April-January in the current fiscal year for not maintaining the average monthly balance.

The bank also reiterated that the customer always has the option of converting their regular savings bank accounts to Basic Savings Bank Accounts or BSBD accounts, free of charge, in case they desire to avail basic savings bank facilities without being subject to maintenance of AMB. Both these accounts do not have minimum balance requirements.

The nation's largest lender had re-introduced the charges for non-maintenance of average monthly balance in April last year after a gap of five years. If you maintain a minimum balance of less than 50% in metro cities, at present you have to give 30 rupees plus GST of 5.4 rupees. Also, accounts holders under the age of 21 were exempted. If the shortfall is less than 50%, then the penalty will be Rs 7.50. SBI has said that this will come into effect from 1st April 2018 and this will benefit 25 crore customers across India.

SBI has 41 crore savings bank accounts, out of which 16 crore accounts are either under Pradhan Mantri Jan-Dhan Yojana or basic savings bank accounts.

Vanessa Coleman