Money & Banking

No minimum balance required for SBI savings accounts

Vinson Kurian Thiruvananthapuram | Updated on March 12, 2018 Published on May 03, 2012

The State Bank of India has asked its branches to remove the minimum balance stipulation and refund charges that were collected for failure to maintain the same.

The circular issued on April 25 said the bank has decided to waive the requirement of maintenance of minimum balance for all types of savings bank accounts with immediate effect.

Accordingly, no minimum balance charges would be levied every quarter henceforth, the circular addressed to chief general managers of all SBI circles said.

Branches were advised to use approved publicity material to the effect and to have them displayed prominently on branch premises. In a preceding circular sent only the day before, the bank ordered refund of charges for non-maintenance of minimum balance ‘of personal segment' customers.

This was aimed at setting right an earlier order that sought to apply charges for non-maintenance of minimum balances on all eligible accounts for the quarter ended March 31, 2012.

REFUND ORDERED

The circular said that “the competent authority has since approved refund of minimum balance charges recovered, if any, in respect of non-maintenance of minimum balance for the quarter.” A senior official of SBI said, “We are doing this to help improve our customer base. It has been in the offing for some time.”

Banks, including SBI, fixed a higher minimum savings balance for customers in order to help compensate for services they provided. The waiver of minimum balance therefore represents a major departure from the bank's policy. The official did not elaborate on why the change was done.

> vinson.kurian@thehindu.co.in

Published on May 03, 2012

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.