Public sector behemoth State Bank of India (SBI) has introduced minimum balance requirement in savings accounts from April 1. The bank will charge a fee to the account holder, if the minimum balance drops below a threshold limit.
The minimum balance requirement for the bank customers is different depending upon areas such as metro, urban, semi-urban and rural.
According to the bank, the minimum balance in savings bank account is the monthly average balance - the average of daily balances in the account during the month.
Following are the details:
Area |
Minimum Average Monthly Balance |
Metro |
Rs 5,000 |
Urban |
Rs 3,000 |
Semi-urban |
Rs 2,000 |
Rural |
Rs 1,000 |
The penalty for non-maintenance of minimum balance ranges from Rs 50 to Rs 100, plus service tax.
For metropolitan areas:
Shortfall |
Charges |
Over 75% |
Rs 100 plus service tax |
50-75% |
Rs 75 plus service tax |
Under 50% |
Rs 50 plus service tax |
For rural areas:
The penalty for non-maintenance of minimum balance ranges from Rs 20 to Rs 50, plus service tax.
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