State Bank of India has decided to increase manifold the minimum balance required for maintaining savings account from April 1, hitting 31 crore depositors including pensioners and students.
The monthly average balance (MAB) requirement has been increased to as high as Rs 5,000 for branches in six metros.
Savings bank account holders of SBI and its five associates (merging with it on April 1) will have to maintain the monthly balance or else they will invite a penalty ranging from Rs 20 (rural branches) to Rs 100 in (metro cities).
SBI has 31 crore savings bank accounts.
As of now, monthly average balance (MAB) for a savings bank account is Rs 500 without facility of cheque book and Rs 1,000 with cheque book across the country.
India's largest bank has now decided to fix separate MABs for 'metro', 'urban', 'semi-urban' and 'rural' areas from the beginning of next financial year.
Here are all the new charges that will come into existence from April 1:
- The bank will start charging Rs 50 after the first three cash deposits of the month. This limit is prescribed for saving bank accounts.
- For current account holders the cash transaction charges can be as high as Rs 20,000
- The bank account holders will have to maintain a minimum balance or Monthly Average Balance (MAB)
- Failing to maintain the minimum balance can attract a fee up to Rs 100 plus service tax
- The charges and MAB varies according to the location of bank. It is minimum in case of rural branches.
- In metropolitan areas like Delhi, Mumbai, Chennai and Bengaluru there will be a charge of Rs 100 plus service tax, if the balance goes below 75 per cent of the minimum average balance.
- If the account holder is falling short of 50 per cent or less of the MAB, then the bank will charge Rs 50 plus service tax.
- Cash withdrawal from ATMs will be charged after the first three transaction for other banks and first five transactions from SBI ATMs.
- The account holder will be charged Rs 20 after the three transactions from other bank ATMs and will be charged Rs 10 for withdrawals from SBI ATMs.
- There will be no charge on withdrawals from SBI ATMs if the account holder maintains a minimum balance of Rs 25,000
- In case of other bank ATMs, the account holder will have to keep a minimum sum of Rs 1 lakh to avoid withdrawal charges.
- Rs 15 will be charged for SMS alerts per quarter from debit card holders who manage to maintain average quarterly balance of up to Rs 25,000 during the three months period.
- There will be no charge for UPI/ USSD transactions of up to Rs 1000.
With inputs from PTI