SBI Minimum Balance 2021 | SBI MAB Limit, Penalty and Charges

Do you have an SBI Savings Bank Account? If that’s the case, you’ll be interested in the following information. State Bank of India (SBI), the country’s largest lender, recently provided this gift to its customers by declaring that all types of savings accounts will no longer be required to maintain a monthly average amount. SBI declared a few months ago that customers with savings accounts must maintain a sufficient monthly average amount in their accounts. In addition, SBI has established various monthly average balances (MAB) for accounts affiliated with different bank branches and will levy a penalty for non-compliance. In this article, we will provide you with details about the SBI Minimum Balance 2021.

SBI Minimum Balance

However, as of March 11, 2020, all 44.51 crores of savings bank account holders would be able to use the zero balance facility on their accounts. Aside from that, account holders are no longer responsible for any SMS charges that were previously assessed on a quarterly basis.

What is the Current Rate of Interest on All Savings Bank Accounts?

SBI has also set the interest rate for all savings bank accounts at 3% per annum, regardless of the amount brackets, after the latest announcement. You may learn more about the new interest rates by looking at the table below.

AmountInterest Rate on Saving Accounts Before March 10, 2020Interest Rate on Saving Accounts After March 10, 2020
Below INR 1 lakh3.25% per annum3% per annum
Above INR 1 lakh3% per annum3% per annum

SBI Minimum Balance Rules Prior to the Recent Announcement

When it comes to deciding the particular amount of penalty, the State Bank of India has divided its branches into three categories. Metro, Semi-urban, and rural are the three branches. If you have a savings bank account at a metro or urban bank branch, you must maintain an SBI Minimum Balance (monthly average balance) of INR 3,000, according to SBI’s website. Customers in semi-urban SBI branches must maintain a monthly balance of INR 2,000, whereas customers in rural SBI branches must maintain a monthly balance of INR 1,000. However, following the current declaration, there are no longer any such requirements for keeping a MAB.

Insufficient Balance Penalty

Charges for not maintaining an average minimum balance in savings accounts have been reduced by SBI. The increased fees have been in place since April 1, 2018. For non-compliance, SBI savings bank account holders in metro or urban branches must pay a penalty of INR 15 instead of the previous INR 30-50 + GST. Customers of metro or urban branches who finished a month with a monthly average balance shortfall of up to 50% (INR 1,500 – INR 3,000) were previously fined a penalty of INR 30 plus GST. If the gap was between 50% and 75%, the account holder was required to pay a penalty of INR 40 plus GST. Those having a deficiency of more than 75%, on the other hand, had to pay a penalty of INR 50 plus GST.

Customers with savings bank accounts in semi-urban/rural branches will pay INR 12 and INR 10 GST if they do not maintain a minimum average balance, which is significantly lower than the previous penalty of INR 40 plus GST every month.

Let’s look at the table below, which shows both the current and proposed charges for non-maintenance of the average monthly balance.

Branch LocationsAMB Shortfall RangeProposed Charges (Per Month)Existing Charges (Per Month)
Metro & UrbanUp to 50% Above 50%-75% Above 75%INR 10 INR 12 INR 15INR 30 INR 40 INR 50
Semi-UrbanUp to 50% Above 50%-75% Above 75%INR 7.50 INR 10 INR 12INR 15 INR 30 INR 40
RuralUp to 50% Above 50%-75% Above 75%INR 5 INR 7.50 INR 10INR 20 INR 30 INR 40

Note: The applicable GST will be added to the charges in the table.

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SBI ATM Cash Withdrawal Limit

SBI, India’s largest lender, has decreased the maximum cash withdrawal limit via ATM to 50%, or INR 20,000 per day. Until then, you can withdraw up to INR 40,000/- per day from an ATM. The limit has been lowered in order to combat ATM fraud. Another goal is to increase digital payments because, despite the government’s efforts, India is still far from being ready to be a Digital India. According to bank authorities, the majority of daily transactions are under INR 20,000, therefore lowering the limit will have little impact on clients.

Charges for SBI Cash Withdrawals

If you withdraw money from ATMs more than three times from other banks in a month, you will be charged INR 20, and if you withdraw money from SBI ATMs more than five times, you will be charged INR 10. Withdrawals from State Bank of India (SBI) ATMs, however, would be free of charge up to INR 25,000. Furthermore, if the amount surpasses INR 1 lakh, there will be no penalty for withdrawals made by its customers from ATMs of other banks.

The charges for closing a savings bank account have been announced by the bank. The revised charges for closing a savings bank account are listed below.

Charges for Closing an SBI Savings Bank Account

PeriodExisting Closure ChargesRevised Closure Charges
Freelook period – Up to 14 Days of Account OpeningNILNIL
After 14 Days up to 1 Year of Account OpeningINR 500 + GSTINR 500 + GST
Beyond 1 Year of Account OpeningINR 500 + GSTNIL
Account closed on settlement of accounts of deceased depositorsINR 500 + GSTNIL
Closure of Regular Savings Bank Account by BSBD Account holdersINR 500 + GSTNIL

*The charges listed above have been in force since October 1, 2019.

Merger of SBI

Since September 30, 2017, the State Bank of India (SBI) has declared that checkbooks and IFSC codes are no longer valid. This decision was made in light of the State Bank of Bikaner and Jaipur’s (SBBJ), State Bank of Mysore’s (SBM), State Bank of Travancore’s (SBT), State Bank of Patiala’s (SBP), and State Bank of Hyderabad’s (SBH).

SBI Minimum Balance Penalty Charges

Metro and urban branch (required MAB ₹ 3,000)Charges
Shortfall <= 50%Rs. 10 + GST
Shortfall > 50-75%Rs. 12 + GST
Shortfall > 75%Rs. 15 + GST
Semi-urban branch (required MAB ₹ 2,000)
Shortfall <= 50%Rs 7.50 + GST
Shortfall > 50-75%Rs 10 + GST
Shortfall > 75%Rs.12 + GST
Rural (required MAB ₹ 1,000)
Shortfall <= 50%Rs 5 + GST
Shortfall > 50-75%Rs. 7.50 + GST
Shortfall > 75%Rs 10 + GST

Failure to meet the average monthly balance requirement – if the customer’s average in the bank account fell below the acceptable value – resulted in a penalty ranging from Rupees 5 to Rupees 15. (Excluding taxes).

FAQ’s

What is the SBI Minimum Balance charge?

Previously, SBI savings bank customers in metro, semi-urban, and rural areas had to maintain average monthly balances of 3000, 2000, and 1000 rupees, respectively. Non-maintenance of average monthly balance used to result in a penalty of $5 to $15 plus taxes from the bank.

What happens if the balance on your SBI account is zero?

Even at the time of account establishment, there is no requirement for a minimum balance, and customers are given a free ATM/debit card. The services of depositing and withdrawing money are both free. In addition, the bank is prohibited from charging fees for non-operation or activation of an inactive account.

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