State Bank of India to impose a penalty up to Rs. 100 per month (excluding GST of 18 per cent) if prescribed monthly average balance in savings bank accounts is not maintained. As per Reserve Bank of India rules, banks can now charge for non-maintenance of minimum balance in regular savings accounts.
Penalty amounts for failing to comply with MAB will vary from Savings bank accounts in metros, urban, semi-urban and rural branches. Depending upon the quantum of the shortfall, SBI imposes specified penalties ranging from Rs. 50 to Rs. 100 excluding taxes.
For example, SBI savings bank account in the metro city must maintain a monthly average balance of Rs. 5,000. If the average balance shortfall during a month is more than 75 percent, a non-maintenance charge of Rs. 100 will be imposed.
If in case the average balance falls between Rs. 1,500 and Rs. 2,500, this causes a shortage of more than 50 per cent, a charge of Rs. 75 will imposed excluding taxes. SB accounts with Rs. 2,500 balance will be charged a penalty of Rs. 50, plus taxes. Account holders from urban areas, semi-urban and rural areas, MAB requirements are noted at Rs. 3,000, Rs. 2,000 and Rs. 1,000 respectively.
“A regular review of your account will help you to ensure the average monthly balance is maintained and avoid the minimal charges,” SBI tweeted.
SBI allows eight free ATM transactions which include 5 at SBI ATMs and 3 at other bank ATMs in metro cities. Non-metro cities get 10 ATM transactions with 5 includes at SBI ATMs and 5 at other ATMs. A charge of Rs. 20 and taxes will be imposed on exceeding the permissible limit on ATM withdrawal.