SBI waives minimum balance penalty on all savings accountsTop Stories

August 20, 2020 16:51
SBI waives minimum balance penalty on all savings accounts

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SBI introduced new rules for the benefit of savings account holders that include no pay charges for SMS service, and zero penalties on lack of balance in the account.

In what comes as a big relief to State Bank of India (SBI) customers, the bank announced some new rules for the benefit of its customers having savings account in the bank. The rules comprise no charges for the SMS service and removal of penalties for not maintaining minimum balance in the savings accounts.

Earlier, if a savings account holder does not maintain the minimum Monthly Average Balance (MAB), SBI would attract penalties that varied in metropolitan and rural areas across the country.

SBI’s savings account holders were required to maintain a minimum amount of Rs. 3000 every month in metro and urban cities, Rs. 2000 in semi-urban areas and Rs.1000 in rural areas respectively.

The bank used to levy a penalty ranging from Rs.5 to Rs.15 plus taxes on the non-Maintenance of average monthly balance in savings accounts.

State Bank of India’s official twitter handle tweeted on August 18 conveying the good news to customers of the bank.

However, a user commented to the post by asking a question if this facility is applicable for all savings bank holders with internet banking and checkbook facilities. Replying to the comment, SBI further tweeted that the waiver of charges is applicable to all accounts.

However, SBI has advised its customers on the same day to try to maintain the minimum balance in their accounts as they would be eligible for other benefits.

In the wake of coronavirus pandemic, the State Bank of India has announced that it will waive charges for non-maintenance of average monthly balance for all savings bank accounts.

SBI has over 44 crore savings accounts across the country.

Earlier, in 2019 during October, the State Bank of India has launched a Debit card EMI facility to all its customers where they can opt for an EMI tenure of a minimum of 6 months to 18 months.

SBI said that the debit cards of existing customers will be valid to purchase products at 40,000 plus merchants and stores in over 1500 cities having Point of Sale machines totaling over 4.5 lakh.

This also means that the debit card users need not pay the entire amount immediately while purchasing a product. The EMI facility on debit cards is issued to enable hassle free purchases and paperless loans.

The EMI’s will begin one month after the purchase date of any product.

By Gayatri Yellayi

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SBI  SMS charges  minimum balance waiver