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State Bank of India has exempted basic savings bank deposit accounts, small accounts, accounts held by minors and pensioners, and those held by recipients of social welfare benefits, among others, from maintaining a Monthly Average Balance.
The Monthly Average Balance requirement (MAB) in metro centres has been reduced to ₹3,000 from ₹5,000 with effect from October 1.
“For non-maintenance of MAB, the charges have also been revised downwards, ranging from 20-50 per cent across all population groups and categories,” the bank said in a statement. Currently, the charges at semi-urban and rural centres range from ₹20 to ₹40 and at urban and metro centres from ₹30 to ₹50.
After amalgamation with its five associate banks and Bharatiya Mahila Bank, SBI had revised the charges on account holders’ minimum balance (non-maintenance), ATM use and cash-handling, among others, with effect from April 1. This did not go down well with customers.
In its statement, SBI underscored that financial inclusion accounts, including Jan Dhan Accounts, have never been subject to any charges. The bank said it has 42 crore savings bank accounts, out of which 13 crore accounts under the Pradhan Mantri Jan Dhan Yojana / Basic Savings Bank Deposit were already exempted. The revision in MAB is likely to benefit another 5 crore account holders.
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