SBI reduces charges for non-maintenance of average minimum balance

State Bank of India has retained the amount that has to be maintained as average monthly balance

State Bank of India today reduced the penalty charges on non-maintenance of average monthly balance by up to 75 percent from April 1 as the measure had faced a public backlash for raking in huge profits by way of penal charges. These new rates will be effective from April 1. The decision comes in view of the feedback from the various users.

In October 2017, SBI had cut service charges for those people who do not maintain their monthly average balance; they reduced the charges by a huge 20-50%. Failing to do so a penalty of Rs 50 (urban), Rs 40 (semi-urban), Rs 30 (rural) was charged on the bank account holder.

The charges for non-maintenance of AMB for customers in Metro and Urban centres have been reduced from a maximum of Rs 50 per month to Rs 15 per month.

The move will benefit 25 crore customers of the bank.

Between April 2017 and November 2017, SBI had collected Rs1,771.67 crore from customers on account of non-maintenance of AMB, according to a response that the Ministry of Finance gave in Lok Sabha in February 2018 (read it here).

United Kingdom growth to be slowest in G20 this year, says OECD
That was higher from a November forecast of 1.2 percent due to the broader global improvement. National Treasury now anticipates growth of 1.5% in 2018, rising to 2.1% in 2020.

SBI reported a net loss of Rs 2,416 crore for the December quarter as it had to make provisions for rising bad loans.

At SBI, in metro and urban centres, a customer has to maintain a AMB of Rs 3000, while in semi-urban region the AMB stands at Rs 2000 and in rural centres a Rs 1000 AMB is needed. These charges are between Rs20 and Rs40 in semi-urban and rural branches.

Of the 41 crore savings accounts with SBI, 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted from the feature.

Gupta said, "Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied".

Last month, Kumar had said savings accounts are a product in which it is expected that some money would be available and transactions will take place. In addition, students upto the age of 21 years are also exempted, it said in the release. My outgo on the ATM card itself is Rs 1,500 crore annually.

Related news:

Hot News

isis-killer-beheading-video-story-top Dick's Sporting Goods Inc (NASDAQ:DKS) To Release Earnings
Mar 13, 2018 - 15:36
The shares of the company (DKS) staged the smart recovery as has roared back some 33.67% after stumbling to its new 52-weeks low. It worsened, as 83 investors sold DKS shares while 103 reduced holdings. 48 funds opened positions while 104 raised stakes.

isis-killer-beheading-video-story-top Donald Trump sacks Secretary of State Rex Tillerson
Mar 13, 2018 - 15:26
The Secretary of State had previously been forced to deny media reports that he called Mr Trump a "moron". " Mike Pompeo , Director of the Central Intelligence Agency , will become our new Secretary of State.

isis-killer-beheading-video-story-top CRPF men killed in blast triggered by Naxals in Chhattisgarh
Mar 13, 2018 - 15:23
The personnel were onboard a mine protection vehicle which was passing through Kistaram, a naxal-dominated part of Sukma district. On March 11, 2017, suspected Maoists ambushed a CRPF road-opening team and killed 12 troopers in Sukma.

isis-killer-beheading-video-story-top Does America need the American Idol reboot right now?
Mar 13, 2018 - 14:49
Katy and Treavor did some major flirting, but alas, he has a girlfriend.and a golden ticket. Season two finalist and CT resident Kimberley Locke gives us a whole recap.

isis-killer-beheading-video-story-top Slovakian skier wins first gold as Paralympics get under way
Mar 13, 2018 - 14:48
They will compete as individuals because Russian Federation is banned from the Games, due to a doping scandal. There are a record 80 gold medals up for grab, South Korean News Agency (Yonhap) reported.

isis-killer-beheading-video-story-top Marcus Rashford insists Jose Mourinho doesn't need to explain prolonged absence
Mar 13, 2018 - 14:20
J├╝rgen Klopp's side responded in the second period, pulling one back by forcing Eric Bailly to put through his own net just past the hour mark.

isis-killer-beheading-video-story-top Missouri forward Jordan Barnett arrested for DWI
Mar 13, 2018 - 13:54
The University of Missouri student athlete handbook states a driving while intoxicated charge mandates a week minimum suspension. Jordan Barnett is suspended for the Tigers opening round NCAA Tournament game on Friday. "I don't know about that".

isis-killer-beheading-video-story-top Jose Mourinho Scorches Frank De Boer Over Rashford Comments
Mar 13, 2018 - 13:49
I read something, some quote from the worst manager in the history of the Premier League , Frank De Boer . Paul Pogba has an outside chance of being involved after he missed the Liverpool game with a gashed leg.

isis-killer-beheading-video-story-top Roque hits United Nations human rights chief's 'crude language'
Mar 13, 2018 - 13:32
Zeid said Duterte's attacks against UN special rapporteurs can not go unanswered and the UN Human Rights Council must take a position.

isis-killer-beheading-video-story-top TCS shares fall over 5%; m-cap dips by Rs 30513 cr
Mar 13, 2018 - 13:30
Post the share sale, Tata Sons' holding in Tata Consultancy Services (TCS) has come down to around 72 percent from 73.52 percent. Tata Sons will use the proceeds to pay creditors of its wireless division, a person with knowledge of the matter said Monday.

isis-killer-beheading-video-story-top Max Boot: Trump snookered by both Koreas into meeting Kim
Mar 13, 2018 - 13:16
But the uncertainty still lingers over plans for the first-ever meeting of a serving US president and a North Korean leader. The US president recently accepted an invitation to meet the North Korean leader in the coming months.

isis-killer-beheading-video-story-top CM Punk I'm Fighting at UFC 225 ... & I'm Gonna Win!
Mar 13, 2018 - 12:52
Former WWE star CM Punk (real name Phil Brooks) had been expected to get back in the octagon sometime this year. The fan favorite could be enough to draw a lot of viewers to the upcoming pay-per-view, however.

isis-killer-beheading-video-story-top Actress Salma Hayek blasts new Frida Kahlo Barbie doll
Mar 13, 2018 - 12:50
Mrs Romeo told AFP news agency that the problem was not confined to image rights. "It should be a Frida that represents Mexico". Mattel says it received the rights to produce the doll with the Frida Kahlo Corporation , which was founded in Panama in 2005.

isis-killer-beheading-video-story-top United States detecting some Taliban interest in Afghan peace talks - Mattis
Mar 13, 2018 - 12:49
Mattis also said he had seen some changes in Pakistan's behaviour since Trump blasted the country previous year for harbouring the Taliban.

isis-killer-beheading-video-story-top Rabada suspended for 2 Tests after breaching ICC Code of Conduct
Mar 13, 2018 - 12:48
The key seemed to be Mitchell Marsh, the last member of Australia's top six, who was unbeaten on 39 at the start of play. Nathan Lyon was then charged for appearing to drop the ball deliberately close to AB de Villiers after a run-out.