SBI Minimum Balance Rules, Penalty Charges For Non-Compliance Explained

SBI, the country's largest lender,categorises its accounts into four types depending on their location, namely metro, urban, semi-urban and rural.

SBI Minimum Balance Rules, Penalty Charges For Non-Compliance Explained

SBI customers with accounts in semi-urban areas are required to maintain an AMB of Rs. 2,000

State Bank of India, the country's largest lender, requires the holders of its regular savings account to maintain a certain average monthly balance (AMB). Major commercial banks such as SBI have defined certain rules to ensure sufficient balance in the bank accounts of their customers. Failing to meet the average monthly balance criteria set by the banks, such as SBI, leads to levy of a penalty charge from the customers. These rules therefore discourage the customer from operating the account with nil balance. SBI requires its customers holding regular savings accounts maintain a monthly average of Rs. 1,000-3,000 to avoid any penalty charges, according to the bank's website - sbi.co.in.

SBI categorises its branches into four types depending on their location: metro, urban, semi-urban and rural. The amount of penalty varies depending on the type of branch and the degree of shortfall, from the required balance, according to the SBI website.

Here are five key things to know about SBI's average monthly balance (or minimum balance) rules:

1. Customers failing to meet the AMB requirements have to bear a penalty charge, the amount of which depends on factors such as branch location.

2. 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.

Metro and urban branch (required AMB Rs 3,000)Charges (applicable in case of shortfall)
Shortfall <= 50%Rs 10 + GST
Shortfall > 50-75%Rs 12 + GST
Shortfall > 75%Rs 15 + GST

(As mentioned on sbi.co.in)

3. SBI customers holding savings accounts in metro and urban branches are required to maintain a monthly average balance of Rs. 3,000.

Semi-urban branch (required AMB Rs 2,000)Charges
Shortfall <= 50%Rs 7.50 + GST
Shortfall > 50-75%Rs 10 + GST
Shortfall > 75%Rs 12 + GST

(As mentioned on sbi.co.in)

4. SBI customers with accounts in semi-urban areas are required to maintain an average monthly balance of Rs. 2,000.

Rural (required AMB Rs 1,000)Charges
Shortfall <= 50%Rs 5 + GST
Shortfall > 50-75%Rs 7.50 + GST
Shortfall > 75%Rs 10 + GST

(As mentioned on sbi.co.in)

5. SBI customers holding an account in the bank's rural branches are required to maintain a monthly average balance of Rs. 1,000. 

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