SBI reduced penalties by up to 75%, 25 Cr account holders get benefits, if not minimized balance
New Delhi. SBI, the country’s largest bank, has made a huge reduction in penalties for not maintaining Monthly Hours Balance (MAB) in Savings Account. The bank has reduced the charge by 75 percent. Now, any customer will not have to pay more than 15 rupees plus GST penalty. So far it was a maximum of 50 rupees plus GST. Bank customers will get the benefit of reduced penalty from April 1. SBI’s decision will benefit 25 million subscribers.
The 15 rupees penalty is now for SBI customers in metro and urban areas. At the same time, for the semi-urban and rural areas, the penalty has been reduced from Rs 40 per GST to Rs 12 and Rs 10 plus GST.
1,771 crore Criticism of the penalty was imposed on
The data released by the Finance Ministry in January revealed that between April and November 2017, between the months of April to November 2017, the penalty recovered from the customers who did not maintain the MAB in the Savings Account was Rs 1,771 crore. There was considerable criticism from the bank about this, and then the bank had indicated that it was considering minimizing the balance amount and not penalizing it.
SBI’s retail and digital banking MD PK Gupta on deduction of monthly balance penalties said that the bank has cut this by keeping in mind the feedback received from the customers. The bank has always been giving priority to its customers and this step is also one of the efforts being made towards fulfilling expectations from their bank.
Gupta also said that SBI is also facilitating its customers to shift the Regular Savings Bank Account to the Basic Savings Bank Account (BSBD). Regarding keeping monthly average balance in the BSBD account does not apply. Apart from this, savings accounts such as Prime Minister Jan Dhan Yojana, Small Accounts, Pensioners, Miners and all Social Beneficiary Accounts are also exempt from the MAB. Apart from this, a student account of up to 21 years of age has also been exempt.