New Delhi: State Bank of India (SBI) is likely to reduce minimum balance requirement for savings accounts, according to various reports said on Friday.
The rates of monthly average balance are Rs 3,000 for metros, Rs 2,000 for semi-urban areas and Rs 1,000 for rural areas.
The SBI, after a gap of six years, had reintroduced the Monthly Average Balance (MAB) charges from April 1, 2017.
SBI currently charges penalty from customers for non-maintenance of monthly average balance in savings accounts.
As per the list of revised charges of SBI, failure to maintain monthly average balance in accounts attracts penalty of up to Rs 100 plus goods and services tax (GST).
In metropolitan areas, there will be a charge of Rs 100 plus GST, 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 GST.
Similarly, in rural areas, the monthly average balance requirement has been kept at Rs 1,000. Any shortfall in maintaining minimum balance in rural areas can attract penalty in the range of Rs 20 to Rs 50 plus GST.
However, after criticism by customers, it reduced those charges with effect from October 1.