You got a savings account with the State Bank of India, and are you maintaining the minimum average monthly balance? If not, then you will be penalized, depending upon where your account is!
With effect 1st October 2019, SBI has notified the changes and issued new guidelines for minimum average monthly balance to be maintained in savings accounts. The notification published on the official website of SBI – onlinesbi.com, also elaborates the penalty scheme applicable to accounts which default on minimum monthly balance guidelines.
What is the new rule for the minimum monthly balance?
As per new guidelines issued by SBI, the average minimum monthly balance to be maintained in savings account depends on the location of the operating account. The minimum monthly balance and penalty thereof will depend on whether your account is in an urban, semi-urban or rural area.
If your savings account is in an urban area, then the minimum average monthly balance in your savings account should be Rs. 3000. It is noteworthy that erstwhile, the minimum balance requirement in urban areas was Rs. 5000, which has been revised to Rs. 3000.
For savings accounts in semi-urban areas, the minimum average monthly balance should be Rs. 2000. Whilst, the savings accounts in rural areas have to maintain a minimum average monthly balance of Rs. 1000 only.
How much is the penalty for defaulting the minimum balance rule?
The penalty levied on minimum average monthly balance defaulters is dependent on the location of the savings account as well as on the level of default.
For urban accounts, the penalty charged varies from Rs. 10 plus GST to Rs. 15 plus GST, for minimum balance shortfall of 50% to 75% respectively.
For semi-urban accounts, the penalty charged varies from Rs. 7.5 plus GST to Rs. 12 plus GST, for minimum balance shortfall of 50% to 75% respectively.
For rural accounts, the penalty charged varies from Rs. 5 plus GST to Rs. 10 plus GST, for minimum balance shortfall of 50% to 75% respectively.
