Data collected by the finance ministry showed that SBI collected Rs. 1,771.67 crore as penalty from customers for non-maintenance of monthly average balance in savings accounts during April to November 2017. The bank faced a backlash on the news and is likely to cut its minimum balance requirement.
The current balance requirements are Rs. 3000 for metros, Rs 2,000 for semi-urban areas and Rs. 1,000 for rural areas.
SBI's Rs. 3000 requirement is higher than that of other banks but lower than the private banks like ICICI, HDFC, and Axis, which require a minimum of Rs. 10,000 as minimum balance on savings accounts.
The State Bank of India is said to have been calculating the impact of charges it has imposed and is likely to revise it for customers accordingly.