Latest Updates On SBI Minimum Balance Rules, Zero Balance Accounts
State Bank of India (SBI), the largest lender of the country, levies certain charges on customers failing to meet its MAB or monthly average balance rules applicable to savings accounts. However, at the same time, it also provides several savings accounts which do not require the customer to maintain any particular minimum balance every month. Earlier this year, the bank had slashed its minimum balance penalty charges for the convenience of its customers, after facing criticism for charging more than its quarterly profit in penalties levied on customers failing to meet the MAB rules.
Here are key details on SBI minimum balance rules (2018) and its zero balance accounts:
Minimum balance in SBI savings account 2018
SBI accounts are divided on the basis of locations into four categories of branches: metro, urban, semi-urban and rural. The average monthly balance (AMB) requirements of SBI savings accounts vary on the basis of branch type.
Customers holding savings accounts in SBI's metro and urban branches are required to maintain an average monthly balance of Rs 3,000. Those holding the savings accounts in semi-urban and rural branches are required to maintain average monthly balances of Rs 2,000 and Rs 1,000 respectively.
| SBI branch type | Average monthly balance requirement |
|---|---|
| Metro | Rs 3,000 |
| Urban | Rs 3,000 |
| Semi-Urban | Rs. 2,000 |
| Rural | Rs 1,000 |
| (Source: sbi.co.in) | |
SBI minimum balance penalty charges
Metro, urban accounts
If the average monthly balance in an SBI metro and urban savings account is less than or equal to 50 per cent of the required AMB, the penalty charge is Rs 10 + GST (Goods and Services Tax), according to the bank's website - sbi.co.in. If the shortfall is more than 50-75 per cent of the required AMB, SBI levies a penalty of Rs 12 + GST. If the shortfall in the account is more than 75 per cent of AMB, the charge levied is Rs 15 + GST.
SBI minimum balance penalty charges on semi-urban accounts
If the shortfall in a semi-urban account is less than or equal to 50 per cent of the required AMB, SBI charges Rs 7.50+ GST. If shortfall in the account is more than 50-75 per cent of the required monthly average balance, the penalty levied is Rs 10 + GST. If shortfall in the account is more than 75 per cent of the required AMB, SBI charges a penalty of Rs 12 + GST.
SBI minimum balance penalty charges on rural savings accounts
If the shortfall in an SBI rural savings account is less than or equal to 50 per cent of the required AMB, the lender charges Rs 5 + GST. If the existing amount maintained in the account is less than 50-75 per cent of the required AMB, SBI levies a penalty of Rs 7.50 + GST. If shortfall is more than 75 per cent of the required AMB, the charges levied are Rs 10 + GST.
| Branch type | Shortfall in average monthly balance | Penalty charges (excluding GST) for non-maintenance of required AMB |
|---|---|---|
| Metro and urban | <=50% | Rs. 10 |
| > 50-75% | Rs 12 | |
| >75% | Rs 15 | |
| Semi-Urban | <=50% | Rs 7.5 |
| > 50-75% | Rs 10 | |
| >75% | Rs 12 | |
| Rural | <=50% | Rs 5 |
| > 50-75% | Rs 7.5 | |
| >75% | Rs 10 | |
| (Source: sbi.co.in) | ||
Zero balance SBI savings accounts - savings accounts that do not require maintenance of a particular minimum balance
The requirement to maintain a monthly average balance is not applicable to the
following categories:
Savings accounts opened for the purpose of financial inclusion including Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts: The Pradhan Mantri Jan-Dhan Yojana (PMJDY) ensures access of various financial services to weaker sections and low-income groups, according to the SBI website. SBI savings accounts opened under the scheme are absolved of minimum balance requirements.
No frill accounts - Customers opening no frill accounts cannot maintain balances exceeding Rs 50,000.
Salary Package accounts - SBI offers an entire range of salary accounts for varied sectors, such as central government, state government, defence forces, paramilitary forces, police forces, corporates and institutions.
Basic Savings Bank Deposit accounts: BSBD accounts target poor sections of society to encourage them to start saving without any burden of charges or fees. This account can be opened by any individual provided he/she has valid KYC (know your customer) documents. KYC norms help banks verify the identity of their customers.
BSBDA- Small Accounts: This type of savings account can be opened by any individual above 18 years of age. The person need not submit officially valid KYC documents.
Pehla Kadam and Pehli Udaan accounts: Both these accounts are meant for minors. Pehla Kadam SBI accounts are jointly opened with the parent/guardian. Pehli Udaan SBI accounts can be opened by minors above the age of 10 years and who can sign uniformly. This account can be opened in the sole name of the minor.
Minors up to the age group of 18, pensioners under all categories, recipients of social security welfare benefits, who receive direct benefits (cash transfers) in their accounts, and students up to the age of 21 years, are not required to maintain any minimum balance in SBI savings accounts.