SBI Slashes Charges For Non-Maintenance Of Minimum Balance In Savings Account Up to 70%
March 13th, 2018
In a move that will benefit its consumers, State Bank of India (SBI) has cut its charges for the non-maintenance of Average Monthly Balance (AMB) in savings accounts. The new charge will be effective from April 1, 2018. The move is expected to benefit 25 crore SBI customers, as reported by The Economic Times. SBI informed that the decision to reduce AMB was taken after considering the feedback of its stakeholders.
”We have reduced these charges taking into account the feedbacks and sentiments of our customers. SBI also offers its customers options to shift from regular savings bank account to basic savings account on which no charges are levied,” the officials said.
In metro and urban areas, the charges for non-maintenance of AMB has been reduced to Rs 50 per month to Rs 15 per month. For semi-urban and rural customers, the charges have been slashed from Rs 40 per month to Rs 12 and Rs 10 respectively. GST charges will be applicable on top of the above-mentioned charges.
Severe criticisms were drawn at SBI for imposing heavy charges on its consumers. The bank earned an income of Rs 1,771 crore in just 8 months, from consumers who failed to maintain a minimum balance in their savings account. The amount surpassed SBI’s July-September quarter net profit of Rs 1,581 crore.
It was in April 2017 that SBI has revised its AMB charges after a gap of six years. After repeated feedback from the stakeholders. In October last year, SBI reduced the service charges on non-maintenance of AMB by 20-25%.
“Bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations. Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied,” said PK Gupta, MD, SBI to The Economic Times.
The bank exempted beneficiaries of social benefits and pensioners from the levy of these charges.