State Bank of India: The charges on non-maintenance of an average monthly balance in savings accounts have been reduced to around 75 per cent.
New Delhi :The State Bank of India on Tuesday reduced its charges on non-maintenance of an average monthly balance (AMB) in savings accounts by up to 75 per cent, effective April 1 2018.
The charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of ₹50 per month plus (GST), to ₹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 ₹40 per month plus GST to ₹12 and ₹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,” State Bank of India’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.
SBI’s plan to reduce the minimum balance requirement reportedly comes after the negative news on the income generated on the fees. 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 a BSBD account free of charge, in case he desires to avail basic savings bank facilities without being subject to maintenance of AMB, Gupta said.
A finance ministry data, released in early January, showed that SBI netted a windfall of Rs 1,771.67 crore, more than its second quarter profit, from customers for non-maintenance of monthly average balance in savings accounts in eight months of 2017-18.
The finance ministry data showed the bank charged Rs 1,771.67 crore from customers on account of non-maintenance of minimum average balance between April and November 2017.
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.
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