Mumbai: The State Bank of India on Monday lowered the minimum average monthly balance (MAB) requirement in a savings account to Rs 3,000 from Rs 5,000 and also revised downwards penalties for not maintaning such a balance.
The revised MAB requirement and charges will become applicable from October, the bank said in a statement. The public sector lender also decided to exempt pensioners, beneficiaries of social benefits from government and minors from the requirement of minimum balance in savings account.
In April, the bank had re-introduced MAB and charges for non-maintenance of balance after a gap of five years. In metropolitan areas the minimum balance requirement was Rs 5,000. For urban and semi-urban branches, it was fixed at Rs 3,000 and Rs 2,000, respectively, and for rural branches it was Rs 1,000.
The lender also revised downwards the penalty for non-maintenance of MAB. “For non-maintenance of MAB, the charges have also been revised downwards ranging from 20-50 per cent across all population groups and categories,” the bank said.
“It has now been decided to exempt the pensioners, beneficiaries of social benefits from government and accounts of minors. The revision is likely to benefit another 5 crore account holders,” according to the bank report.
Now, the charges at semi-urban and rural centres range from Rs 20 to Rs 40 and at urban and metro centres from Rs 30 to Rs 50, the bank said. Earlier, in the metros, the bank was charging Rs 100 plus GST if the balance fell below 75 per cent of the MAB of Rs 5,000. If the shortfall was 50 per cent or less, the penalty charge was Rs 50 plus GST.