State Bank of India (SBI) on Monday lowered the minimum average monthly balance (MAB) for savings account from Rs. 5,000 to Rs 3,000. This decision will come into effect from October this year. SBI also decided to revise penalties for non-adherence. SBI exempted the accounts of minors and pensioners under this new policy.
The Jan Dhan and Basic Savings Bank Deposit Accounts were already exempt from this.
“For non-maintenance of MAB, the charges have been revised downward ranging from 20% to 50% across all population groups and categories. The charges at semi-urban and rural centers range from Rs 20 to Rs 40 and at urban and metro centers from Rs 30 to Rs 50. The revised MAB requirement and charges will become applicable from the month of October,” the public lender said in a statement.
“SBI has reviewed the requirement of maintaining Monthly Average Balance (MAB) and the charges for non-maintenance of MAB. It has now been decided to exempt the pensioners, beneficiaries of social benefits from the government and accounts of minors. This is in addition to the already exempted categories under Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts and Basic Savings Bank Deposit Accounts (BSBD),” it said.
State Bank of India has more than 42 crore savings bank account out of which 13 crore accounts fall under Pradhan Mantri Jan-Dhan Yojana and Basic Savings Bank Deposits Accounts which have been exempted under this new policy.
In April this year, 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.