Those holding savings bank accounts with State Bank of India (SBI) are required to maintain a minimum average balance each month. Failing to maintain the required monthly average balance or minimum balance attracts a penalty. The sum to be maintained as average in an SBI savings bank account depends upon the type of branch in which the account holder has the account. SBI classifies its bank branches into four categories for this purpose, according to its website - sbi.co.in. These are rural, urban, semi-urban and metro. Under its MAB or Monthly Average Balance rules, India's largest bank SBI has specified different monthly averages required for savings accounts held in different types of branches. 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. (Also read: SBI extends zero processing fee offer on home loans)
From October 1, 2017, SBI has revised its Monthly Average Balance or MAB criteria applicable to savings bank accounts, according to its website. A penalty amount ranging from Rs. 20 to Rs. 50 (both amounts exclusive of GST or goods and services tax) is chargeable for non-maintenance of sufficient balance as per the bank's Minimum Average Balance rules. This amount is determined on the basis of type of branch where the account is held and the degree of shortfall, between the balance maintained and the MAB required.
SBI branch type vs required MAB
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.
Here's a look at different penalty charges set by SBI for non-maintenance of minimum average balance in savings bank accounts:
SBI metro/urban branches - minimum balance penalty
(SBI revised its penalty charges for non-maintenance of minimum average balance in savings accounts, with effect from October 1)
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.
SBI rural/semi urban branches - minimum balance penalty
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, according to the SBI website.