State Bank of India (SBI), the largest country's lender offers certain accounts where average monthly balance (AMB) rule is not applicable. These accounts are known as zero balance savings accounts and does not require customers to maintain any particular minimum average balance, said SBI. However, in other accounts, SBI may requires its savings bank account customers to maintain an average monthly balance in their accounts. Average Monthly Balance (AMB) is the minimum average of deposits required by the bank customers in their savings bank accounts. Customers failing to meet the AMB requirements in a month have to bear certain penalty charges.
SBI's Average Monthly Balance (AMB) is not applicable to following categories:
1.Financial inclusion accounts including PMJDY accounts: PMJDY (Pradhan Mantri Jan-Dhan Yojana) is a national mission for financial inclusion to ensure access to financial services, namely, banking/ savings and deposit accounts, remittance, credit, insurance, pension in an affordable manner, said SBI. Accounts opened under PMJDY are opened with zero balance.
2. No frill accounts: Branches may open accounts for those customers who are in no position to submit the documents mentioned by the bank and they intend to maintain balances not exceeding rupees fifty thousand in all their accounts taken together and the total credit summation in all the accounts taken together is not expected to exceed rupees one lakh in a year, subject to: a) introduction from another account holder who has been subjected to full KYC procedure. The introducers account with the bank should be at least six months old and should show satisfactory transactions. b) any other evidence as to the identity and address of the customer to the satisfaction of the bank.
3. Salary Package accounts: SBI offers a range of salary accounts, crafted to suit customer's needs. SBI's special salary account packages are available for varied sectors, such as central government, state government, defence forces, paramilitary forces, police forces, corporates/ institutions etc. These comprehensive packages can be opened with zero balance.
4. Basic Savings Bank Deposit (BSBD) accounts: This account can be opened by any individual provided he/she has valid KYC (Know Your Customer) documents. It is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees, said SBI.
5. Pehla kadam and Pehla Udaan accounts: Pehla Kadam and Pehli Udaan, are savings bank accounts specially for children that not only help minor learn the importance of saving money but also allow them to experiment with the 'buying power' of money. These accounts do not require customers to maintain any particular minimum average balance.
6. Pensioners all categories: SBI has not stipulated any minimum balance that has to be kept in your pension account maintained with the bank.
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