SBI (State Bank of India) has revised service charges on maintaining monthly average balance. India’s largest lender, SBI, has affected some changes to the MAB rules which will benefit about 5 crore State Bank of India account holders. State Bank of India has reduced the charges on its accounts for not maintaining minimum balance. This change in the monthly average minimum account balance (MAB) rules will not only benefit the SBI account holders but will also strengthen State Bank of India’s position in the sector.
Revised SBI service charges
State Bank of India has revised service charges on maintaining monthly average balance on its accounts. The country’s largest lender SBI has brought down service charges on not maintaining Monthly Average Balance (MAB) by a whopping 20 per cent to 50 per cent.
It is after a gap of five years that State Bank of India has re-introduced charges for non-maintenance of balance and MAB. According to the report, the rules that were put in place in the month of April had given rise much resentment among the general public as well as the SBI customers.
Charges in Metro and Urban centres
The bank has also decided to treat the urban and metro centres in the same category. After the revision, the requirement of MAB (Monthly average balance) in metro centres now stands reduced to Rs 3000. This amount was earlier Rs 5000. It is reported that this revision is likely to benefit additional 5 crore account holders.
The charges at rural and semi-urban centres range from Rs 20 to Rs 40 whereas the charges at metro and urban centres range from Rs 30 to Rs 50. The revised MAB charges and requirement will be applicable from the next month ie October 2017.
Who will benefit from revised SBI Service Charges
It was reported that certain segments of account holders such as widows and pensioners were not able to maintain the monthly average balance. What added to their woes is the fact that their income level was not such that they could afford these charges. This move of revising the MAB and service charges will benefit these account holders apart from the other SBI account holders.
Pensioners’ accounts (All categories), accounts of Minors (up to the age group of 18 who are Primary Account Holders) as well as beneficiaries of social benefits from the Government will be exempted from any charges. Accounts which are exempt from MAB (Monthly average balance) are Phela Kadam and Pheli Udaan accounts, Basic Savings Bank Deposit Account, financial inclusion Accounts and Small Accounts.
Source: Economic Times