Maintain A Minimum Balance In Your SBI Account Or Pay A Penalty

State Bank Of India
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Mumbai, March 04: State Bank of India, India’s largest Public sector bank, has decided to re-commence the charge on savings bank account (SB Account) holders for failing to maintain the monthly minimum balance in their accounts.

The account holders must maintain a minimum balance and will charge defaulters a penalty from April 1, reported the Economic Times.

The SBI, according to a PTI report, withdrawn the minimum balance criteria for savings bank accounts a few years back in a bid to attract new customers.

Private sector players HDFC Bank, ICICI and Axis Banks recently announced the levy of a minimum charge of Rs 150 after 4 free cash transactions per month, at their branches.

According to the information available on the State Bank website, the monthly average balance that customers will have to maintain in their SB Accounts in State Bank branches in metropolitan areas is Rs 5,000.

Similarly, SBI Account holders will be required to maintain a monthly average balance of Rs 3,000 in Urban areas and Rs 2,000 in semi-urban areas and Rs 1,000 in rural areas.

The penalty charge to defaulters will be based on the difference between the minimum balance required and the shortfall.

In a metropolitian area, if the shortfall is higher than 75 percent, a charge of Rs 100 plus service tax will be levied.

If the shortfall lies between 50-75 percent, SBI would charge Rs 75 plus service tax and Rs 50 plus service tax for a shortfall of 50 percent.

In rural areas, the penalty would be between Rs 20 to Rs 50 plus service tax, said State Bank of India in a notification.

The Mumbai-headquartered public sector lender would also renew from April 1, the Rs 50 charge for people carrying out over 3 cash transactions at its branch within a month. This charge is applicable currently as well.

Meanwhile, State Bank Of India has reduced interest rates on term deposits maturing between 180 days and 1 year, and between 456 days and 3 years with effect from March 1, 2017.

State Bank Of India, the country’s largest bank by assets will now pay 6.5 percent on deposits with maturities between 180 days and less than one year, and 6.75 percent on those maturing between 456 days and less than 3 years.

Earlier, State Bank Of India  used to pay 6.75 percent on deposits maturing between 180 days and 210 days, 7 percent on those maturing between 211 days and less than 1 year, 6.95 percent on deposits maturing between 456 days and under 2 years, and 6.85 percent on those maturing between 2 years and less than 3 years.