INSUBCONTINENT EXCLUSIVE:
Twenty four banks collected close to Rs 5,000 crore as penalties in 2017-18 from customers for non-maintenance of Average Monthly Balance
(AMB) balance in their accounts, reported news agency Press Trust of India (PTI) on Sunday
Average Monthly Balance (AMB) is the minimum average of deposits required by the bank customers in their savings accounts
Customers failing to meet the AMB requirements in a month have to bear certain penalty charges
According to the report, country's largest lender State Bank of India (SBI), topped the list in penalising its customers for not maintaining
minimum account balance in FY18.State Bank of India (SBI)SBI, which reintroduced the penalty on deposits going below monthly average balance
basis from April 2017, charged nearly half the amount raised by the 24 banks put together (Rs
The lender collected a whooping Rs
2,433.87 crore from customers
However, soon after this report circulated, SBI said in a statement its charges for non-maintenance of AMB were one of the lowest in the
The banking major said that it reduced AMB requirement by up to 40 per cent with effect from April 2018
Also, almost 40 per cent of its savings bank accounts were exempt from the average monthly balance rules, the lender added.HDFC BankHDFC
Bank, the largest private sector lender in the country, collected Rs
590.84 crore for non-maintenance of Average Monthly Balance (AMB) balance in their accounts from its customers in FY18
The bank recently revised its fixed deposit or FD interest rates in select maturities for both general and senior citizens of the
country.Axis BankAxis Bank comes third in the list by collecting Rs
530.12 crore from customers in 2017-18
Axis Bank recently posted a smaller-than-expected drop in quarterly profit as the country's third-biggest private sector lender by assets
earned more from interest-bearing assets.ICICI BankICICI Bank charged Rs
317.6 crore from its customers for non-maintenance of AMB balance in their accounts in last financial year, the report said.
