Business

SBI cuts charges for non-maintenance of minimum balance from April 1


Mumbai, Mar 13 (PTI): The State Bank of India on Tuesday reduced its charges on non-maintenance of an average monthly balance (AMB) in the savings account by up to 75 percent, effective April 1.

The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month plus goods and services tax (GST) to Rs 15 per month plus GST. The above revision will benefit 25 crore bank customers.

For semi-urban and rural centres, the charges have been reduced from Rs 40 per month plus GST to Rs 12 and Rs 10 per month plus GST, respectively, the bank said in a release.

"We have reduced these charges taking into account the feedback and sentiments of our customers," SBI's managing director (retail and digital banking) P K Gupta 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," he said.
The SBI also offers its customers to shift from a regular savings bank account to basic savings bank deposit account (BSBD) on which no charges are levied.

A customer always has the option of converting the regular savings bank account to BSBD account free of charge, in case he desires to avail basic savings bank facilities without being subject to maintenance of AMB, Gupta said.

The lender has 41 crore savings bank accounts, out of which 16 crore accounts under the Pradhan Mantri Jan Dhan Yojna/ BSBD, and of pensioners/ minors/ social security benefit holders are already exempted from charges on non- maintenance of minimum balance.


Comment on this article

  • Declan, Mumbai

    Wed, Mar 14 2018

    Ease of looting and fleeing thriving under the Modi government.

    DisAgree Agree [1] Reply Report Abuse

  • Jenifer, Mangalore

    Tue, Mar 13 2018

    "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," he said."

    In that case, why didn't you raise the interest on deposits when you increased the interest for lending ?

    Chameleons !

    DisAgree Agree [11] Reply Report Abuse

  • SMR, Karkala

    Tue, Mar 13 2018

    With the Indian Banking system bearing the brunt of huge NPAs, thanks to loan defaulters, the country's largest lender State Bank of India collected Rs 1,771 crore during April- November 2017 as penalty from customers who couldn't maintain a minimum monthly average balance (MAB) in their accounts.
    Facing unprecedented pressure on their profitability due to staggering bad loans, banks have now found MAB charges as a lucrative source of revenue.
    The State Bank of India, the country’s largest public sector bank, for example, raked up as much as Rs 1,771 crore during April-November 2017 in MAB charges. The amount surpasses the bank’s second quarter net profit of Rs 1,581.55 crore.
    Public sector banks (PSBs) have written off loans of Rs 55,356 crore during April-September 2017, nearly 54% more compared to the same period last fiscal, as per data compiled by rating agency ICRA.
    The combined bad loans of 21 PSBs are estimated at Rs 7.33 lakh crore as at the end of September this year.
    The RBI in June identified 12 large defaulters including Essar Steel, Monnet Ispat, Bhushan Steel and Bhushan Steel and Power.
    Today, the sum total of non-performing loans has reached the terrifying figure of Rs 9,50,000 crore, or $140 billion. Worse still, Rs 1,140,000 crore of capital has been wasted on what the government euphemistically calls ’stalled’, but which are in reality abandoned projects. And worst of all, no fewer than 500 companies that had invested this money are now facing bankruptcy proceedings.
    SBI 'wrote off' 7000 crore of loans owed by wilful defaulters in Nov 2016; including 1201 crores that was defaulted by Mallya. So poor folks have have already paid for Mallya's cheating and rest will be covered in the next 1.5 yrs.Excellent strategy.
    If corporate don't pay the loans 'wilful defaulter'. If common Indian can't maintain minimum balance penalised.
    Are we punishing poor for being too poor?
    Jai Hind

    DisAgree [1] Agree [10] Reply Report Abuse

  • D.Shetty, Mangalore

    Tue, Mar 13 2018

    Why did they cut ..cheaper or benefit to people of country kangress dont like..

    DisAgree [30] Agree [3] Reply Report Abuse

  • Declan, Mumbai

    Tue, Mar 13 2018

    SBI, RBI, CBI, all being controlled by . . . . . . . . .

    DisAgree [1] Agree [26] Reply Report Abuse

  • D.Shetty, Mangalore

    Tue, Mar 13 2018

    Yes we understand ..earlier it was HQ in Italy

    DisAgree [12] Agree Reply Report Abuse

  • Declan, Mumbai

    Tue, Mar 13 2018

    As per media reports Chota Chor Modi is in US.

    DisAgree Agree [13] Report Abuse

  • Ravi C, Mangalore

    Tue, Mar 13 2018

    @ D.Shetty, Mangalore

    This was implemented post 2014 and stopped before 2019. What Kangress has to do with that? Moreover, whoever lost the money, will not be refunded them - more than 300 crores!

    DisAgree [1] Agree [8] Reply Report Abuse

  • SJM, Mangalore

    Wed, Mar 14 2018

    You will get back along with 15 Lakhs which some fake ruler has promised to get votes.

    DisAgree Agree Reply Report Abuse

  • Jenifer, Mangalore

    Tue, Mar 13 2018

    Pakoda sellers better maintain silence because they don't know ABC of banking. A demand for full cut in charges levied by the bank for non-availability of minimum balance could still have been better because even reduced charges is still a robbery, no charity.

    DisAgree Agree [12] Reply Report Abuse

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