INSUBCONTINENT EXCLUSIVE:
State Bank of India (SBI)'s basic savings bank deposit account does not require any minimum balance.State Bank of India (SBI), the largest
lender of the country, requires customers to maintain a certain minimum balance in its savings accounts, except for some like the basic
savings bank deposit account
Minimum balance requirements of SBI vary according to the location of the SBI branch in which a customer opens his account
With effect from the start of this financial year, SBI had reduced penalty for non-maintenance of the average monthly balance in savings
accounts, after it faced a backlash for earning a huge amount from such penalties.Here are 10 things you should know about the minimum
SBI has four types of branches
These are: metro, rural, urban and semi-urban
The minimum balance requirements and charges for insufficient balance vary according to the branch type.2
In metro and urban SBI branches, customers are required to maintain an average monthly balance (AMB) of Rs 3,000
In semi-urban SBI branches, customers have to maintain an average monthly balance of Rs 2,000
In rural SBI branches, customers have to maintain an average monthly balance of Rs 1,000
The latest average monthly balance rules for savings accounts of SBI came into effect on April 1, 2018.3
For SBI accounts in metro and urban branches: Customers who maintain a balance equal to or less than Rs 1,500 are charged Rs 10 per month
plus the applicable GST (Goods and Services Tax) rate
If their average monthly balance is less than 50-75 per cent of the required monthly balance, they will have to pay Rs 12 per month plus GST
If the balance falls below 75 per cent of Rs 3,000, SBI charges a penalty of Rs 15 per month plus GST.Metro Urban (AMB= Rs
3000/-Proposed Charges p.mShortfall < = 50%Rs
10/- +GSTShortfall > 50 - 75%Rs
12/- +GSTShortfall > 75%Rs
15/- +GSTSemi-Urban (AMB Rs
5.00 +GSTShortfall > 50 - 75%Rs
7.50 +GSTShortfall > 75%Rs 10.00 +GST(From SBI's corporate website - sbi.co.in)4
For SBI accounts in semi-urban branches: If your average monthly balance falls short by up to or less than Rs 1,000 of Rs 2,000, SBI charges
Rs 7.50 per month plus GST
If your monthly average balance is less than 50-75 per cent of Rs 2,000, the penalty levied is Rs 10 per month plus GST
average monthly balance falls short by up to or less than Rs 500 of Rs 1,000, the penalty levied is Rs 20 per month plus GST
If the shortfall in average monthly balance is less than 50-75 per cent, SBI charges Rs 7.50 plus GST
If the shortfall is less than 75 per cent, SBI levies a penalty of Rs 10 plus GST.6
SBI was criticised for earning Rs
1,771.67 crore from customers for insufficient monthly average balance in savings accounts in eight months of 2017-18
This amount was more than SBI's September quarter profit in FY18.7
SBI's basic savings bank deposit accounts do not require maintenance of any minimum average balance.8
The digital savings account and insta savings account, both of which are opened via SBI YONO app, require zero minimum balance till March
31, 2019 and August 2018 respectively.9
As on March 31, 2018, SBI has over Rs 10,137 crore savings bank accounts.10
SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees.
