After receiving flak from customers for raising minimal balance and other charges, the country’s largest bank, State bank of India (SBI), has reduced its minimum balance and other charges. The minimum monthly average balance (MAB) has been reduced to Rs 3000 for metro locations. Earlier, this was Rs 5,000 for metro locations. The bank has also reduced non-maintenance charges across various categories. The reduction in non-maintenance charges is in the range of 20-50 percent. The reduced minimum balance and charges will become applicable from October 1. The banks also said that metro and urban centers will be treated as the same and the minimum balance requirement for these locations will be Rs 3000 from October 1. However, no change has been made to the minimum balance in semi-urban and rural locations. For semi-urban and rural areas, the MAB continues to be Rs 2000 and Rs 1000 respectively.
In case of non-maintenance of MAB, the charges at semi-urban and rural locations have been revised to Rs 20-40. Earlier, these charges were in the range of Rs 25 – 75. In case of urban and metro locations, the charges have been revised in the range of Rs 30 to 50. Earlier, these charges were in the range of Rs 50-100. SBI also announced that there will be no MAB requirement for pensioners, beneficiaries of social benefits from the government and accounts of minors. Accounts like the PMJDY (Prime Minister’s Jan Dhan Yojna) accounts and Basic Savings Bank Deposits Accounts (BSBD) are already excluded from the MAB requirement. The revision of MAB and charges is expected to benefit more than 5 crore SBI customers.