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SBI to revise service charges soon: Penalty for non-maintenance of minimum balance cut up to 80%

Sunil Dhawan
SBI minimum balance charges, SBI charges, SBI NEFT charges, SBI charges for ATM, cash withdrawal limit

SBI Service Charges: The State Bank of India (SBI) is revising its service charges soon. Some of the services will continue to be charged as presently while on some others the charges have been drastically reduced. Importantly, the charges levied for non-maintenance of Monthly Average Balance (MAB) has been cut up to nearly 80 per cent. While transacting through digital modes such as NEFT and RTGS have been made lucrative, charges for cash withdrawals at branches have been tweaked a bit. The State Bank of India (SBI) is revising its service charges from October 1, 2019.

Penalty for non-maintenance of minimum balance

Currently, for Metro Centre branches and Urban Centre branches, the requirement for Average Monthly Balance (AMB) is Rs 5,000 and Rs 3,000, respectively. From October 1, AMB will be Rs 3,000 for both Metro Centre branches and Urban Centre branches. For someone not maintaining AMB of Rs 3,000 with a shortfall of more than 75 per cent at an Urban Centre branch, the penalty for non-maintenance of minimum balance has been cut from Rs 80 to Rs 15, a fall of more than 80 per cent! It is, therefore, suggested to keep a tab and do SBI balance check on frequent basis.

SBI monthly average balance from October 1

Also, currently, charges per month for Non-Maintenance of Monthly Average Balance (MAB) are levied on savings bank accounts, including Surabhi SB (Excluding All Salary Package Accounts, Basic Savings Bank Deposit, Small & PMJDY a/cs). From October 1, the exclusion will include All Salary Package Accounts, No Frill Accounts, Basic Savings Bank Deposit, Small and PMJDY accounts, Pehla Kadam and Pehli Udaan accounts, Minors up to the age group of 18, Pensioners of all categories, Recipients of social security welfare benefits(Direct Benefits) and accounts for students up to the age of 21 years.

SBI monthly average balance – Existing

As per the RBI guidelines, banks have to ensure that recovery of charges to levy Minimum Balance Non-maintenance Charges should not turn into negative balance solely on account of levy of Service Charges.

Must Watch: How To Withdraw PF Online

NEFT/ RTGS charges

While the cost of NEFT and RTGS transactions through digital means is free, the cost of NEFT/ RTGS charges for transactions at SBI branches has come down as well.

(From October 1)

Cash Withdrawals

While number of free transactions per month through Internet/Mobile Banking, irrespective of average monthly balance will be unlimited, if the cash withdrawals are at the home or no-home branch, there will be the charges. The maximum cash withdrawal limit at Non-Home Branches for a savings account holder is Rs 50,000.

New ATM charge structure

The ATM charge structure has been revised. One way inter-changeability is allowed for branch transaction on ATM transactions. It means a customer will be allowed a maximum of 10 free debit transactions at 6 Metro centres at SBI ATMs and maximum 12 free debit transactions at other centre ATMs, if there is no transaction at other Bank ATM and no transaction at the branch. For All Salary Package accounts at all locations, irrespective of variants, free and unlimited number of transactions at SBI ATMs, other Bank ATMs will be allowed.

Savings bank account

For the savings bank account, first 10 cheque leaves will be free in a financial year. Thereafter, 10 Leaf Cheque Book at Rs 40 + GST and 25 Leaf Cheque Book at Rs 75 +GST will be charged. For Senior Citizens and Salary Package Accounts, cheque leaves will be free.