India’s largest money lender state-owned bank SBI has slashed the rates for non-maintenance of Average Monthly Balance (AMB) in savings account by 75%, making it Rs 15 from Rs 50.
The State Bank of India has reduced the charges it used to levy for non-maintenance of an Average Monthly Balance (AMB) in savings account by 75%, effective from April 1. The charges for non-maintenance of AMB customers in metro and urban centre, for not maintaining minimum balance of Rs 3000 in their saving accounts has been reduced from a maximum of Rs 30-50 per month plus goods and services tax (GST), to Rs 10- 15 per month plus GST. The bank levies these charges monthly, depending on the shortfall of a particular category. For instance, if the shortfall is greater than 75%, charges applicable would be Rs 15 as compared to Rs 50 earlier.
The same reduction applies to semi-urban and rural centres, for which the charges have been reduced from Rs 40 per month plus GST to Rs 12 and Rs 10 per month plus GST, if minimum balance of Rs 1000 is not maintained monthly. This move will benefit more than 25 crore bank customers across the country. P K Gupta, MD-retail and digital banking at SBI said that the reduction in charges has been made as per the feedbacks and sentiments of bank’s customers. Gupta further said, “The bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customers’ expectations.”
Besides this, the bank has also offered to its customers to shift from a regular savings bank account to basic savings bank deposit account (BSBD), free of charge for processing. Shifting to BSBD accounts will mean zero minimum charges since they are exempted from minimum balance rules. Till date, the State Bank of India has as many as 410 million savings bank accounts, out of which, 160 million accounts have been completely exempted from AMB requirements. And further reducing the AMB non-maintenance charges will surely benefit all customers, a move that is highly welcomed and appreciated.