SBI or State Bank of India, the country's largest bank, requires its savings bank account holders to maintain certain minimum balance every month. The bank has specified different monthly average balances (MAB) for accounts held in different types of branches. These are metro, rural, urban and semi-urban. For example, those holding savings bank accounts with SBI in its metro or urban branches are required to maintain a monthly average balance of Rs 3,000, according to the bank's website - sbi.co.in. At the same time, SBI offers some types of accounts that are exempted from its MAB or monthly average balance requirements. Under a special type of bank account, called Basic Savings Bank Account, SBI doesn't require the customer to maintain any specific monthly average balance.
Here's a look at SBI's minimum balance - or MAB (monthly average balance) rules - and the accounts that are excluded from this requirement:
Failing to maintain the required monthly average balance or minimum balance in SBI's savings bank accounts attracts a penalty. The amount of penalty depends upon the degree of shortfall. In other words, the farther you are from the required minimum balance, the bigger amount you have to pay as penalty being an SBI customer.
Minimum balance required vs branch type
From October 1, 2017, those holding savings bank accounts at SBI's metro and urban branches are required to maintain a monthly average balance of Rs. 3,000, according to the bank's website. Customers in semi-urban SBI branches are required to maintain a monthly average of Rs.2,000. Those holding SBI savings bank account in rural branches are required to keep a minimum monthly balance of Rs. 1,000.
Penalty amount for non-maintenance of minimum balance
SBI customers holding a savings bank account with a metro or urban branch - who are required to maintain a monthly average balance of Rs. 3,000 - are charged a penalty of Rs. 30-50 plus GST for non-compliance with its MAB rules. According to the bank's website, those with a shortfall of up to 50 per cent (monthly average balance of Rs. 1,500-3,000) will be charged a penalty of Rs. 30 plus GST. In the SBI metro and urban branches, savings bank accounts with a shortfall between 50 per cent and 75 per cent will attract a charge of Rs. 40 plus GST, according to the SBI website. Those with a shortfall of more than 75 per cent will attract a charge of Rs. 50 plus GST, it noted.
Holders of SBI savings bank accounts at semi-urban and rural branches are required to maintain a monthly average balance of Rs. 2,000 and Rs. 1,000 respectively. In these categories, SBI will charge a penalty of Rs. 20 plus GST for a shortfall of up to 50 per cent as per monthly average balance rules, according to its website. Accounts with a 50-75 per cent shortfall of minimum average balance will attract a penalty of Rs. 30 while those with that of more than 75 per cent will be charged Rs. 40 plus GST.
SBI bank accounts free from minimum balance requirement
SBI's Basic Savings Bank Account is among the types of bank account free from the requirement of Monthly Average Balance or minimum balance. Other than the Basic Savings Bank Account, such account types include Financial Inclusion Accounts, No frill Accounts, Salary Package Accounts and Small Accounts, according to the SBI website.
Here are five things to know about SBI's Basic Savings Bank Account:
1. Besides being free from the requirement to maintain a minimum balance, the Basic Savings Bank Account comes with no upper limit restrictions. That means the customer can deposit as much amount in the account as desired.
2. The Basic Savings Bank Deposit Account requires the customer to not hold any other Savings Bank Account . "The Customer cannot have any other Savings Bank Account, if he/she has a Basic Savings Bank Deposit Account. If the customer already has a Savings Bank Account, the same will have to be closed within 30 days of opening a Basic Savings Bank Deposit Account," SBI mentions on its website.
4. SBI allows a maximum of four withdrawals from a Basic Savings Bank Account in a month. These include withdrawals from the ATMs of SBI and other banks as well as transactions, RTGS, NEFT, clearing, branch cash withdrawals, transfers and internet debits, among others.
5. Other free facilities: With the Basic Savings Bank Account, SBI offers a few other features free of cost. These include receipt/credit of money through electronic payment channels such as NEFT/RTGS and deposit/collection of cheques drawn by central/state government. Besides, the Basic Savings Bank Account attracts no charges on activation of inoperative accounts as well as for closure of account.