SBI Slashes Minimum Balance Charges From Rs 50 To Rs 15: The State bank of India, since the advent of demonetization and the merger of all SBIs associated banks with the SBI (seven banks – State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBN), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT) has been charging heavy ‘Average Monthly Average Balance Charges’ on its customers which led to close 40 lac Saving Bank accounts in the nation and the drive is still going to closing Saving Bank accounts. The hasty decision was taken by SBI in merging decades-long existing associated banks had to absorb many NPAs (Non-Performing Assets) and maintain charges such as ATMs etc.,
The long-pending proposal, done suddenly and with intentionally extending SBI Chairman’s tenure for an extra year after her – Arundhathi Bhattacharya proved bare faced.
SBI Slashes Minimum Balance Charges From Rs 50 To Rs 15
Realizing the sharp fall of savings accounts in the SBI, once known as a pro-underprivileged bank, displeased many loyal SBI customers. Hence the leading SBI didn’t have any choice left to slash up to 70% of ‘Average Monthly Balance’ charges with effect from 1st April 2018.
This move, taken at the right time will help 25 crore customers.
SBI stakeholders upset with this unprecedented move. In a press meet, the SBI has made the following announcement.
“The charges for non-maintenance of AMB for customers in Metro and Urban centers have been reduced from a maximum of Rs 50 per month to Rs 15 per month. Similarly, for Semi-Urban and Rural centers, the charges have been reduced from Rs 40 every month to Rs 12 and Rs 10 GST charges will be applicable over and above the rates specified above.
This assessment follows severe disapproval that the bank earned an immense income of Rs 1,771 crore in just eight months from depositors who failed to maintain balance in their bank accounts.
It is not new many SBI – Savings bank holders became very painful. Every SBI depositor experienced one’s grievance and closed their accounts as the monthly charges are more than what a well-off customer is able to pay. Many bankers opined that the SBI has lost all the credibility that it has been building for more than 150 years.
During the merger, SBI quoted its charges on its official website as follows and changed abruptly changed them immediately as follows:
How much minimum balance you should have?
For metro cities, initially the minimum balance to be maintained was Rs 5,000, but later in September 2017, the bank brought it down to Rs 3,000. Currently, in urban areas, it’s Rs 3,000, while for semi-urban and rural areas, it is Rs 2,000 and Rs 1,000, respectively. The bank had exempted pensioners, beneficiaries of social benefits from the government and accounts of minors from the levy of these charges.