- SBI has relaxed monthly average balance rules with effect from October 1
- Charges for not maintaining minimum balance has been slashed by 50%
- 8 free ATM withdrawals in a month are allowed in SBI savings accounts
SBI, the biggest lender in the country, recently reduced the monthly average balance requirement for metro cities and slashed charges for non-maintenance by up to 50 per cent, effective from October 1. For the purpose of monthly average balance, all SBI savings bank accounts are segregated into four categories of branches - metro, urban, semi-urban and rural. Earlier, the monthly average balance required for savings accounts was Rs. 5,000 in metro branches. Now, that stands reduced to Rs. 3,000 after revision. The monthly average balance requirement for other three categories of accounts - urban, semi-urban and rural branches - stands unchanged at Rs. 3,000, Rs. 2,000 and Rs. 1,000 respectively, according to SBI.
SBI further said that savings accounts of pensioners, beneficiaries of social benefits from the government and the accounts of minors will be exempt from maintaining monthly average balance. This revision will benefit another 5 crore account holders, according to SBI.
Earlier, the charges for non-maintenance of monthly average balance in metro accounts used to range from Rs. 50 to Rs. 100 plus GST of 18 per cent, depending upon the degree of shortfall. Now, these charges stand reduced to Rs. 30-Rs. 50. For urban branch accounts also SBI has cut the charges for non-maintenance of monthly average balance to Rs. 30-Rs. 50, from Rs. 40-Rs. 80 earlier. SBI has also reduced charges for non-maintenance of minimum balance in semi-urban and rural accounts to Rs. 20-Rs. 40. Earlier, SBI charged between Rs. 25 and Rs. 75 for semi-urban account and Rs. 20-Rs. 50 for rural accounts.
SBI ATM Withdrawal Rules
SBI has said that its savings bank customers will get eight free ATM transactions a month (five at SBI ATMs and three at ATMs of other banks) in metro cities and 10 free transactions in non-metro cities (five at SBI ATMs and five at ATMs of other banks).
However, customers of SBI's basic savings bank deposit account will get only four free ATM withdrawals per month, SBI added. After the four free ATM withdrawals, customers of Basic Savings Bank 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.