New Delhi: The State Bank of India has closed nearly 41.16 lakh savings accounts between April-January in the current fiscal year for not maintaining the average monthly balance.
In April 2016, the nation’s largest lender had re-introduced the penal charges on non-maintenance of average monthly balance after a gap of five years. However, in October, it had revised down the charges to some extent.
“Due to provisions of penalty on non-maintenance of minimum balance, the bank has closed 41.16 lakh savings bank accounts between April 1, 2017, and January 31, 2018,”
The State Bank has 41 crore savings bank accounts. from that, 16 crore are under the Pradhan Mantri Jan Dhan Yojana/basic savings bank deposit (BSBD) and of pensioner, minors, social security benefit holders which are all exempted from the penalty for not maintaining of the minimum balance.
Between April and November 2017, the bank had netted a windfall of Rs 1,771.67 crore, more than its second-quarter profit, from customers for non-maintenance of minimum balance, according to the finance ministry data.
Today, the bank had reduced its charges for non- maintenance of average monthly balance by up to 75 percent and also reduced the penal charges for non- maintenance of AMB in the metros and urban centres from a maximum of Rs 50 per month plus taxes at 18 percent to Rs 15 a month and taxes.
For urban and metro customers average monthly balance is of Rs 3,000 per month. For semi-urban and rural centres, the charges have been reduced from Rs 40 to Rs 12, and Rs 10 per, respectively. The MBA requirement for semi-urban area is Rs 2,000, while for rural centres is Rs 1,000.
The bank offers its customers the option to shift from regular savings accounts to BSBD accounts on which no charges are levied.