On 11 March 2020 officials of the State Bank of India announced that the State Bank of India SBI has decided to waive the maintenance of Average Monthly Balance (AMB) for all Savings Bank Accounts. 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. 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.
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.
|Amount||Interest Rate on Saving Accounts Before March 10, 2020||Interest Rate on Saving Accounts After March 10, 2020|
|Below INR 1 lakh||3.25% per annum||3% per annum|
|Above INR 1 lakh||3% per annum||3% per annum|
Other SBI Related Searches
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
|Period||Existing Closure Charges||Revised Closure Charges|
|Freelook period – Up to 14 Days of Account Opening||NIL||NIL|
|After 14 Days up to 1 Year of Account Opening||INR 500 + GST||INR 500 + GST|
|Beyond 1 Year of Account Opening||INR 500 + GST||NIL|
|Account closed on settlement of accounts of deceased depositors||INR 500 + GST||NIL|
|Closure of Regular Savings Bank Account by BSBD Account holders||INR 500 + GST||NIL|
*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).
Previously, SBI savings bank customers in the 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.
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.