Major commercial banks such as State Bank of India (SBI) have set different rules to ensure sufficient balance in the regular bank accounts of their customers. A penalty is levied by the bank in case of non-maintenance of monthly average balance (MAB). MAB is a simple average of the end-of-day (EoD) closing balances in a month. On the other hand, SBI also offers certain accounts where the MAB rules are not applicable. In other words, these bank accounts can be operated with zero balance and are known as zero balance accounts.
Here are 10 things to know about SBI's minimum balance rules, zero balance accounts:
SBI types of branches
1. SBI has categorised its branches into four types, depending on their location: metro, urban, semi-urban and rural.
SBI minimum balance requirement in different branch types
2. Customers having a regular savings bank account in SBI branches located in metro and urban areas are required to maintain a monthly average balance of Rs 3,000, according to the bank's website, sbi.co.in.
3. Customers with SBI savings accounts in semi-urban and rural branches are required to maintain minimum average balances of Rs 2,000 and Rs 1,000, respectively.
Penalty charges for failing to meet minimum balance rules
4. Customers failing to meet the MAB requirements have to bear a penalty charge, the amount of which depends on factors such as branch location.The degree of shortfall, which is the difference between the average balance maintained in a month and the minimum required balance, is also taken into account while levying the charges.
5. Customers failing to meet the MAB requirements have to pay the following charges:
|Metro and urban branch (required MAB Rs 3,000)||Charges|
|Shortfall <= 50%||Rs. 10 + GST|
|Shortfall > 50-75%||Rs. 12 + GST|
|Shortfall > 75%||Rs. 15 + GST|
|Semi-urban branch (required MAB Rs 2,000)|
|Shortfall <= 50%||Rs 7.50 + GST|
|Shortfall > 50-75%||Rs 10 + GST|
|Shortfall > 75%||Rs.12 + GST|
|Rural (required MAB Rs 1,000)|
|Shortfall <= 50%||Rs 5 + GST|
|Shortfall > 50-75%||Rs. 7.50 + GST|
|Shortfall > 75%||Rs 10 + GST|
(As mentioned on bank's website)
6. SBI's zero balance savings accounts are primarily meant for economically weaker sections of society to encourage them to start saving without any burden of charges or fees.
7. SBI's zero balance accounts provide all the usual facilities that come with a regular savings account.
SBI savings account interest rate
8. The interest rate offered by SBI on zero balance saving account is the same as that on regular saving bank account. Customers with Rs 1 lakh or more in their accounts earn an interest of 3.25 per cent, whereas those with less than Rs 1 lakh in their savings bank accounts earn interest at the rate of 3.50 per cent, according to SBI.
SBI zero balance accounts
9. Basic Savings Bank Deposit (BSBD) accounts, accounts opened under financial inclusion scheme PMJDY (Pradhan Mantri Jan-Dhan Yojana), special salary account packages, and the Pehla Kadam and Pehli Udaan accounts (for minors) are some of the accounts offered by SBI that allow operability with zero or nil balance.
10. SBI has also not stipulated any minimum balance for the pension accounts.