Earlier, the customers need to maintaining the average minimum balance of Rs 5000 in their accounts.
The State Bank of India has lowered the amount of minimum balance that has to be required in your savings account to Rs 3,000.
Earlier, the customers need to maintaining the average minimum balance of Rs 5000 in their accounts. The public lender has cut charges on non-maintenance of MAB by 20-50% across customer categories.
The bank has also decided to do away with the minimum balance requirement for minors and pensioners and has reduced the penal charges.
"The pensioners and beneficiaries of social benefits from the government and accounts of minors (upto 18 years) will be exempted from minimum balance requirement. The financial inclusion including Jan Dhan accounts have never been subject to any charges," SBI said.
The revised MAB requirement and charges will be applicable from October 2017.
The revised charges at semi-urban and rural centres range from Rs 20 to Rs 40. And at, urban and metro centres from Rs 30 to Rs 50.
The bank also made it clear that now, an SBI customer has the option of converting the regular savings bank account to a basic savings bank deposit (BSBD) account, free of charge.
BSBD accounts have most of the features of a regular savings account, including debit card, but do not include a cheque book facility.
The bank reiterated that basic savings bank deposit and PM's Jan-Dhan accounts are not required to maintain the minimum balance. The lender has 42 crore savings bank accounts of which 13 crore belong to this category.
"It has now been decided to exempt the pensioners, beneficiaries of social benefits from government and accounts of minors. The revision is likely to benefit another 5 crore account holders," the bank said.
Last week, managing director for national banking group, Rajnish Kumar, had said the lender was reviewing the average monthly balance requirement.
The lender also revised downwards the penalty for non-maintenance of MAB.
(with inputs from PTI)
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