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SBI Savings Account: Minimum Balance Rules You Need To Know

Customers holding SBI savings bank accounts in metro, urban, semi-urban and rural branches need to pay different penalty amounts for non-maintenance of monthly average balance.

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SBI Savings Account: Minimum Balance Rules You Need To Know

SBI charges a fine for non-maintenance of monthly average balance in savings bank accounts


Highlights

  1. SBI fine for non-maintenance based on shortfall, branch category
  2. Metro branch savings account should have Rs 5,000 monthly average balance
  3. From July 1, tax on banking revised to 18% under GST
SBI or State Bank of India, which accounts for more than a fifth of India's banking assets, charges a penalty up to Rs. 100 (plus GST of 18 per cent) per month for not maintaining monthly average balance (MAB) in savings bank accounts. From July 1, tax on banking has been revised to 18 per cent under Goods and Services Tax (GST), the new indirect tax regime. The Reserve Bank of India (RBI) has allowed banks to levy charges on non-maintenance of minimum balance in normal savings accounts. Customers holding SBI savings bank accounts in metro, urban, semi-urban and rural branches need to pay different penalty amounts for non-maintenance of monthly average balance, according to SBI's website.

SBI has specified penalty for various ranges of shortfall for its savings bank customers depending on the categories of branches - rural, semi-urban, urban and metro. For example, if your SBI savings bank account is in one of the metro city branches, you need to maintain a monthly average balance of Rs. 5,000. Also, if the average balance maintained during a month comes out to be between zero and Rs. 1,500, or a shortfall of more than 75 per cent, a non-maintenance charge of Rs. 100 plus GST of 18 per cent will be levied for the month. In case the average balance remains within Rs. 1,500 and Rs. 2,500, which means a shortfall of less than 75 per cent and more than 50 per cent, a charge of Rs. 75 plus taxes will be levied, SBI has said.

Meanwhile, for savings accounts with average balance of more than Rs 2,500, SBI will charge a penalty of Rs. 50, plus taxes.

However, for account holders in urban areas other than metros, semi-urban and rural areas, the MAB requirements are Rs. 3,000, Rs. 2,000 and Rs. 1,000 respectively.

SBI charges

sbi charges

How to avoid fine under SBI's minimum balance rules


Personal finance experts suggest maintaining only one or two savings bank accounts at a time, so that it will be easier to maintain the required average monthly balance in them.

Meanwhile, SBI in a Twitter post said: "A regular review of your account will help you to ensure the average monthly balance is maintained and avoid the minimal charges."


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