In a move that will potentially benefit 25 crore of its customers, State Bank of India (SBI) announced that it will be substantially reducing charges for the non-maintenance of Average Monthly Balance (AMB) in savings account, starting April 1, 2018. The decision comes in view of the feedback from the various users.
While this charge will be applicable if the shortfall is more than 75 per cent, for shortfall of less than 50 per cent and 50-75 per cent, the charges have been reduced to Rs 10 (Rs 30 earlier) and Rs 12 plus (Rs 40), respectively. There are different charges for Metro & Urban, semi-urban and rural villages with an additional tax of GST.
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.
"We have reduced these charges taking into account the feedbacks and sentiments of our customers". The bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations.
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The bank is having now 41 crores savings bank accounts. The lender said that the choice of cutting AMB was taken keeping in see the input from different partners.
Including SBI, other banks across the country also charge penalties if there are not enough funds in the account.
AMB charges are levied by private banks too.
The reply was to a specific query on the number of accounts being closed after introduction of charges on non- maintenance of minimum balance from April 1, 2017. This helps customers get basic savings bank facilities without being subject to the maintenance of the AMB.
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Between April 1 and November 2017, SBI had collected Rs 1,771 crore as penalty from customers who had failed to maintain the average monthly balance in their accounts.
Jan Dhan Yojana accounts, basic savings bank deposits accounts (BSBD), pensioners, beneficiaries of social benefits from the government and accounts of minors are exempted from complying with the minimum balance requirement.
Additionally, students up to the age of 21 years are also exempted.
SBI reported a net loss of Rs 2,416 crore for the December quarter as it had to make provisions for rising bad loans.
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