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