SBI reduces minimum balance to 3,000, pensioners exempted

The State Bank of India on Monday reduced the minimum average monthly balance requirement in a savings account to Rs 3,000 from Rs 5,000.

The revised MAB requirement and charges will become applicable from October, the bank said in a statement.

The public sector lender also decided to exempt pensioners, beneficiaries of social benefits from government and minors from the requirement of minimum balance in savings account.

In April, the bank had re-introduced MAB and charges for non-maintenance of balance after a gap of five years.

In metropolitan areas the minimum balance requirement was Rs 5,000. For urban and semi-urban branches, it was fixed at Rs 3,000 and Rs 2,000, respectively, and for rural branches it was Rs 1,000.
"We have decided to treat the metro and urban centres in the same category and the requirement of MAB in metro centres stands reduced to Rs 3,000," 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.

"For non-maintenance of MAB, the charges have also been revised downwards ranging from 20-50 per cent across all population groups and categories," the bank said.

PTI