- Science & Tech
State Bank of India, India’s largest bank, has decided to resume the charge on savings account holders for failing to maintain the monthly average balance in their accounts.
The bank had done away with the minimum balance criteria for savings bank accounts a few years back in a bid to lure new customers.
Sources said the service charges for non-maintenance of monthly average balance (MAB) will be revised with effect from April 1, 2017.
For metropolitan areas, the mandatory minimum balance will be Rs 5,000. In urban, semi-urban and rural areas, the charges will be Rs 3,000, Rs 2,000 and Rs 1,000 respectively.
However, it must be mentioned that these charges will be based on the difference between the minimum balance required and the shortfall.
For instance, if the shortfall in metropolitan areas is more than 75 per cent, the charges would be Rs 100 plus service tax.
If the shortfall is between 50-75 per cent, the bank would charge Rs 75 plus service tax. If the shortfall is below 50 per cent, a charge of Rs 50 plus service tax would be levied.
For rural areas, the penalty ranges from Rs 20-50 plus service tax, the bank notification said.