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What Is The Minimum Balance Needed In SBI Account? How Much Is The Fine?

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State Bank of India has started charging more from its millions of account holders, after the merger with associate banks for not maintaining a minimum balance.

 

These charges will also apply to customers of 5 former associates and Bharatiya Mahila Bank which have merged with State Bank of India effective April 1.

Let us now see what is the charges and fines levied by SBI on not maintaining the minimum daily average balance.

What is MAB?

What is MAB?

MAB stands for Monthly Average Balance (MAB). All customers of SBI need to keep MAB in their SBI accounts. MAB is the average of daily balances in the account during the month. So, if you have fallen below the stipulated amount of say Rs 5,000 in the metro areas in the first 15 days, you can compensate and make it up in the next 15-days. What you need is the average daily balance and the bank does not charge you immediately for non-maintenance. SBI Merger: 7 Things To Know

What is the minimum average balance needed in SBI Savings Accounts?
 

What is the minimum average balance needed in SBI Savings Accounts?

The amount for MAB requirement is decided based on customer location such as metro, urban, semi-urban and rural. The Monthly Average Balance for an SB account is Rs 1000 in rural areas, Rs 2000 in semi-urban areas, Rs 3000 in urban areas and Rs 5000 in metros. SBI will charge a fee ranging from Rs 50 to Rs 100 plus service tax in case of non-compliance with minimum balance requirements. SBI Hikes Minimum Balance For Savings Account: Know The Charges

Fine in metros

Fine in metros

A regular review of account will help you to ensure the average monthly balance is maintained and avoid the minimal charges.

For metropolitan areas, the penalty for not maintaining MAB is:

Shortfall SBI charges

Over 75%: Rs 100 plus service tax

50-75%: Rs 75 plus service tax

Under 50%: Rs 50 plus service tax

For rural areas, the penalty for non-maintenance of minimum balance ranges from Rs 20 to Rs 50 plus service tax.

Fine in urban region

Fine in urban region

For urban SBI customers the penalty for not maintaining MAB is following:

Shortfall SBI charges plus service tax

Over 75%: Rs 80

50-75%: Rs 60

Till 50%: Rs 40

Fine for semi urban

Fine for semi urban

The semi-urban customers have to pay following charges for not maintaining average monthly balance:

Shortfall SBI charges plus service tax

Over 75%: Rs 75

50-75%: Rs 50

Till 50%: Rs 25

Fine in rural area

Fine in rural area

For rural customers:

Shortfall SBI charges plus service tax

Over 75%: Rs 50

50-75%: Rs 30

Till 50%: Rs 20

A Look At Various SBI Charges From April 1, 2017

SBI merger

SBI merger

The five associate banks that were merged with SBI are SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad). The minimum average balance now also applies for the subsidiaries of the bank. All other fees are also likely to be identical for these banks. So the next time you are falling below the balance that is required remember that you may end up paying a pretty decent penalty. So you need to be very careful. SBI Hikes Minimum Balance For Savings Account: Know The Charges

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Read more about: sbi charge
Story first published: Tuesday, April 25, 2017, 14:29 [IST]
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