Starting from October 1, savings account holders of country's biggest lender, SBI are required to pay lower charges for not maintaining minimum balance. SBI reduced the monthly average balance (MAB) requirement for metro cities - from Rs. 5,000 to Rs. 3,000 - and slashed charges for non-maintenance of minimum balance by up to 50 per cent effective October 1. Meanwhile, SBI also said that those who want to avoid paying monthly average balance non-maintenance charges they can convert their account to basic savings bank deposit account which is a limited-services savings bank account without any charges.
Features Of SBI Basic Savings Bank Deposit Account
Aimed at encouraging savings without any burden of charges or fees, SBI's basis savings bank deposit account is meant for the poorer sections of society, SBI's website said. Eligibility criteria to open the account are same as it is there in case of regular savings bank account. However, the customer cannot have any other savings bank account if he/she has a basic savings bank deposit account, SBI said.
There are also some limitations in this account. Holders of this account are allowed to do only four free withdrawals in a month, including ATM withdrawals at own and other bank's ATMs and transactions through other modes including RTGS/NEFT/clearing/branch cash withdrawal/transfer/internet debits/standing instructions/EMIs debit etc. After the four free withdrawals, customers of basic savings bank deposit account will be charged Rs. 50 plus tax for cash withdrawal at an SBI branch, Rs. 20 plus tax at other bank ATMs and Rs. 10 plus tax at SBI ATMs, the lender said. Here are some of the other features of basic savings bank deposit account:
SBI Basic Savings Bank Deposit Account - Other Features
Mode of Operation: Singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility.
Available at: All branches
Minimum balance amount: NIL
Maximum balance /amount: No upper limit
Rate of Interest: As applicable to savings bank accounts
Service Charges: Basic RuPay ATM-cum-Debit card will be issued free of cost and no annual maintenance charge will be applied
Receipt/ credit of money through electronic payment channels like NEFT/RTGS will be free
Deposit/ collection of cheques drawn by Central/State Government will be free
No charge on activation of inoperative accounts
No account closure charges