New service charges announced by State Bank of India (SBI) and penalties for non-maintainence of minimum balance in the country's largest public sector bank would be applicable for the customers of the newly-merged five associate banks, from April 24.
New service charges announced by State Bank of India (SBI) and penalties for non-maintainence of minimum balance in the country's largest public sector bank would be applicable for the customers of the newly-merged five associate banks, from April 24.
SBI completed the merger of its operations with the State Bank of Hyderabad, State Bank of Travancore, State Bank of Mysore, State Bank of Patiala, and State Bank of Bikaner and Jaipur. It also merged with itself the operations of the Bharatiya Mahila Bank (BMB).
According to a report by The Times of India, a SBI spokesperson said that the merging of all the data of the give associate banks would be complete by April 24 so the new charges announced by SBI will come into effect then.
According to the report, "The synchronisation process will have to be completed to commence all operations from one common platform. Once this process is completed, SBI's charges would become applicable to these customers," the spokesperson added, saying that the minimum balance of a customer would be calculated automatically by the end of the month. If there is no sufficient balance during the end of the month, the bank will levy penalties as announced earlier.
SBI announced maintainence of minimum balance at Rs 5,000 for metro cities, Rs 3,000 for urban areas, Rs 2,000 for semi-urban, and Rs 1,000 for rural areas. Failure to maintain Minimum Average Balance (MAB) will attract a charge of Rs 100 plus service tax.
The penalty on non-maintainence of minimum balance comes at a time when several other, mostly private sector banks, have reintroduced withdrawal charges on transactions from its branches and ATMs over and above four or five free transactions.
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