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SBI Minimum Balance Rules, Penalty Charges For Non-Compliance: All You Need To Know

Monthly average balance or MAB of an SBI savings bank account is the average of daily balances in the account in a month.

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SBI Minimum Balance Rules, Penalty Charges For Non-Compliance: All You Need To Know

SBI accounts are divided on the basis of locations into four categories of branches.


State Bank of India (SBI) levies certain charges on customers failing to meet its monthly average balance (MAB) rules applicable to savings accounts. Monthly average balance of an SBI savings bank account is the average of daily balances in the account in a month, according to the website of the country's largest lender. Customers holding regular savings accounts with the bank are required to maintain a monthly average balance (MAB) to the tune of Rs 1,000-3,000, which varies depending on branch location, according to the SBI website.

Here are 10 things to know about SBI's monthly average balance (minimum balance) rules:

1. SBI accounts are categorised into four types depending on their location: metro, urban, semi-urban and rural. 

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

3. 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.

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

5. The penalty charge for not maintaining the required MAB in SBI's metro and branches ranges from Rs 10 plus GST (goods and services tax) to Rs 15 plus GST, according to the bank's website.

Metro and urban branch (required MAB Rs 3,000)Charges
Shortfall <= 50%Rs 10 + GST
Shortfall > 50-75%Rs 12 + GST
Shortfall > 75%Rs 15 + GST

(As mentioned on sbi.co.in)

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

7. The bank charges a penalty amount ranging from Rs 7.5 plus GST to Rs 12 plus GST from customers failing to comply with the minimum balance or MAB rules in its semi-urban branches.

Semi-urban branch (required MAB 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)

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

9. SBI has set penalty charges to the tune of Rs 5-10 plus GST for non-compliance with the monthly average balance rules in rural branches.

Rural (required MAB 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)

10. However, SBI also offers certain accounts in which the MAB rules are not applicable. In other words, these bank accounts can be operated with nil balance without any balance-related restrictions on the customer. Also widely known as zero balance savings accounts, these bank accounts do not require the customer to maintain any particular minimum average balance. 



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