State Bank of India or SBI customers holding regular savings accounts with the lender are required to maintain a monthly average balance (MAB) to the tune of Rs 1,000-3,000, according to bank's website- sbi.co.in. The monthly average balance, which is the average of end-of-day balances in the savings account in a month, varies depending on the location of the branch. Customers failing to meet the MAB requirements have to bear penalty charges, depending upon factors such as branch location and degree of shortfall from the required average.
Here are the key details about SBI minimum balance rules:
SBI accounts are divided on the basis of locations into four categories of branches: metro, urban, semi-urban and rural. Given below are the MAB requirements for SBI branches:
|SBI branch type||Monthly average balance requirement|
In the event of a default in maintenance of minimum balance/MAB, the bank notifies the customer by SMS/email/letter that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable, according to SBI.
In case the minimum balance is not restored within a reasonable period, charges are recovered under intimation to the account holder. The policy on charges to be levied is decided with the approval of board of the bank. The charges are directly proportionate to the extent of shortfall observed. Accordingly, a suitable slab structure for recovery of charges is finalised.
Here are the penalty charges for failing to meet MAB, according to SBI:
|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 the bank's website)
The requirement to maintain MAB is not applicable to the following categories- financial Inclusion accounts including PMJDY accounts, no frill accounts, salary package accounts, basic savings bank deposit accounts, small accounts, Phela Kadam and Pheli Udaan accounts, minors up to the age group of 18, pensioners all categories, recipients of social security welfare benefits and students up to the age of 21 years, according to SBI.