SBI closes 41.2L SB accounts for not keeping minimum balance

Andrew Cummings
March 13, 2018

Stung by widespread public criticism, the State Bank of India (SBI) on Tuesday slashed the charges that penalised its customers for not keeping "minimum balance" in their saving accounts. The new charges will be application from April 1. SBI customers from urban centres are required to maintain MAB of Rs 3,000, while the same for semi-urban and rural centres stands at Rs 2,000 and Rs 1,000 respectively. Similarly, for their "semi-urban" and "rural" centres, the charges, which are now Rs 40 plus GST per month, will be slashed to Rs 12 and Rs 10 per month plus GST respectively.

"We have reduced these charges taking into account the feedback and sentiments of our customers".

"Bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations".

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

In a press conference, SBI said, the minimum charges were reduced based on the feedback received from various stakeholders.

The SBI also offers its customers to shift from a regular savings bank account to basic savings bank deposit account (BSBD) on which no charges are levied.

SBI's plan to reduce the minimum balance requirement reportedly comes after the negative news on the income generated on the fees.

As The Wire has reported, during April-November 2017, SBI collected Rs 1,771 crore in penal charges from its customers, which was more than its net profit of Rs 1,581.55 crore for the same period. Besides, students up to the age of 21 years are also exempted. The amount recovered from the fine amounted to be more than the profits of the bank's Rs 1,581.55 crore in July-September and almost half of the net profit of Rs 3,586 crore in April-September. The amount was also almost half of the Rs 3,586 crore the bank earned as net profit from April to September. He added that depositors had the option to convert their regular savings accounts to basic savings deposit accounts, which do not fine holders if they do not maintain a minimum balance every month.

Other reports by iNewsToday