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On the back of government pressure, the country’s largest lender State Bank of India (SBI) is planning to reduce the minimum balance requirement to ₹1,000. However, the banking behemoth is yet to take a final call on the same. A few months ago, SBI had reduced the minimum balance limit for a savings account to ₹3,000 from ₹5,000. The bank keeps the limit same for both metro and urban centers while for the semi-urban and rural centres continues to be at ₹2,000 and ₹1,000, respectively. The charges for non-maintenance have been reduced by 20-50 percent across all categories.
SBI chairperson Arundhati Bhattacharya had justified the decision by saying that, “We have a lot of burden such as we have 11 crore financial inclusion of Jan Dhan accounts, we need some charges. We have considered many factors and after analyzing carefully, we have taken this step.” She has also said that these charges existed earlier as well, however, SBI was the only bank that decided to withdraw it in the year 2012. So, it is quite expected that the changes will not have much impact and will be accepted by the account holders.
Below are the revised charges for the non-maintenance of the minimum account balance.
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SBI Savings Account Maintenance Charges
The charges at the semi-urban and rural centers range from ₹20 to ₹40 and at urban and metro centers from ₹30 to ₹50. The revised minimum average balance requirement is applicable since October 2017.
SBI Cash Withdrawal Charges
The cash withdrawal from ATMs will also attract a charge of up to ₹20 if the number of transactions is more than 3 times from other bank’s ATMs in a month and ₹10 for more than five withdrawals from SBI ATMs. However, there will be no charges on withdrawals from the own ATMs of State Bank of India (SBI) within the maximum limit of ₹25,000. In addition to this, in the case of withdrawals by its customers from ATMs of other banks and there will be no charge if the balance exceeds by ₹1 lakh.
The bank has announced the charges on the closure of the savings bank account. Below are the details of the revised charges on the savings bank account closure.
SBI Savings Bank Account Closure Charges
|Period||Existing Closure Charges||Revised Closure Charges|
|Free look period - Up to 14 Days of Account Opening||NIL||NIL|
|After 14 Days up to 1 Year of Account Opening||₹500 + GST||₹500 + GST|
|Beyond 1 Year of Account Opening||₹500 + GST||NIL|
|Account closed on settlement of accounts of deceased depositors||₹500 + GST||NIL|
|Closure of Regular Savings Bank Account by BSBD Account holders||₹500 + GST||NIL|
*The above charges will be effective from October 1, 2017.
State Bank of India (SBI) has announced that the chequebooks, IFSC codes of its five associate banks will be invalid from September 30, 2017. This decision has been taken in lieu to SBI Merger with its five associated banks namely State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH).