SBI Introduces Charges for Not Maintaining Minimum Balance

State Bank of India has decided to reintroduce penalty on non-maintenance of minimum balance in accounts from April 1, 2017.

Failure to maintain Monthly Average Balance (MAB) in accounts will attract penalty of up to Rs. 100 plus service tax.

In metropolitan areas, there will be a charge of Rs. 100 plus service tax, if the balance falls below 75 per cent of the MAB of Rs. 5,000. If the shortfall is 50 per cent or less of the MAB, then the bank will charge Rs. 50 plus service tax.

The charges and MAB varies according to the location of the bank. It will be minimum in case of rural branches.

The bank had suspended levying charges on breach of minimum balance requirements in 2012 to acquire new customers.

The Reserve Bank has permitted banks to levy charges for breaching minimum balance limit.

Withdrawal of cash from ATMs will attract a charge of up to Rs. 20 if the number of transactions exceeds three from other banks’ ATMs in a month and Rs. 10 for more than five withdrawals from SBI ATMs.

However, SBI will not levy any charge on withdrawals from its own ATMs if the balance exceeds Rs. 25,000. In case of other banks’ ATM there will be no charge if the balance exceeds Rs. 1 lakh.

SBI will charge Rs. 15 for SMS alerts per quarter from debit card holders who maintain average quarterly balance of up to Rs. 25,000 during the three-month period.

There will be no charge for UPI/ USSD transactions of up to Rs. 1,000.

SBI will permit savings bank account holders to deposit cash three times a month free of charges and levy Rs. 50 plus service tax on every transaction beyond that. In case of current account, the levy could go as high as Rs. 20,000.