SBI minimum balance rules: The bank imposes certain penalty charges on accounts with insufficient balanceState Bank of India (SBI) requires its customers holding regulator savings bank accounts to maintain certain balance every month in order to avoid penalty charges.
The country's largest bank has put in place a set of rules, which determine the average monthly balance (AMB)required in the savings account.
The amount of balance required in SBI's regular savings account - that is the minimum balance - varies from customer to customer, depending on factors such asbranch location and the degree of shortfall.
Failure to maintain sufficient balance in the savings bank account attracts a penalty ranging from Rs 5 to Rs 15 (excluding GST) for the customer, according to the lender's website -sbi.co.in.Minimum balance requirements in different branch typesSBIhas categorisedits branches into four types of location: metro, urban, semi-urban and rural.SBI customers holding savings accounts with the bank are required to maintain an average monthly average to the tune of Rs 1,000-3,000 to avoid any penalty charges, according to the SBI website.CategoryAverage monthly balance requirementMetroRs 3,000UrbanRs 3,000Semi UrbanRs 2,000RuralRs 1,000(Source: sbi.co.in)That means complying with the monthly average requirement allows the SBI customer - or SBI savings account holder - to avoid the penalty charges.Now, what are the penalty charges applicable in case the customer fails to maintain the required balance average in a monthSBI penalty charges for insufficient balance in savings accountSBI charges the penalty amount based on factors such as branch location and the degree of shortfall, which is the difference between the average required and the average achieved by an account holder in a month.ShortfallPenalty for non-maintenance of AMB in urban/metro SBI branches<=50%Rs.
10 + GST>50%-75%Rs.
12 + GST>75%Rs.
15 + GST(Source: sbi.co.in)(Income tax assessments to be "completely faceless" in few years)ShortfallPenalty for non-maintenance of AMB in semi-urban SBI branches<=50%Rs.
7.50 + GST>50%-75%Rs.
10.00 + GST>75%Rs.
12.00 + GST(Source: sbi.co.in)( Planning a holiday How you can save with SBI Holiday Savings account)ShortfallPenalty for non-maintenance of AMB in rural SBI branches<=50%Rs.
5.00 + GST>50%-75%Rs.
7.50 + GST>75%Rs.
10.00 + GST(Source: sbi.co.in)Meanwhile, SBI offers several types of savings accounts- such as Jan Dhan accounts, basic savings accounts, salary package accounts and small bank accounts - that do not require any particular average monthly balance.
In other words, these savings account can be operated with nil balance.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.