SBI lowers minimum balance to Rs. 3000, cuts penalty charges

New Delhi : The country’s largest banker on Monday lowered Minimum Average monthly Balance in savings account to Rs. 3000 from previous Rs. 5000 and also revised downwards penalties.

State Bank of India(SBI)  said its reduced MAB and penalties will be effective from October, the bank said.

The banker will also exempt pensioners, beneficiaries of social benefits from government and minors from MAB obligation.

In April, after a gap of five years, the bank had re-introduced MAB and charges against non-maintenance of balance. In metropolitan areas, the MAB was Rs. 5000, in urban Rs. 3000, Rs. 2000 for semi-urban and Rs. 1,000 for rural.

“We have decided to treat metro and urban centres in same category in context of MAB” the banker said.

“For non-maintenance of MAB, the charges have been revised downwards from Rs. 20-50 cent across all groups and categories,” it added.

 

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