The largest public-run lender on Saturday clarified that its monthly average balance or MAB requirements are not for basic savings bank deposit account BSBD and Pradhan Mantri Jan Dhan Yojana or PMJDY.
Not adhering to the minimum balance requirements of the banks result in a penalty level based on the branch's location whether it is in a metro or a non-metro city. And if it drops by say 75% of the limit, penalty is imposed with applicable taxes.
In its recent statement, SBI said those customers of the bank who wish to avoid such charges can convert their accounts to BSBD a/c. The site of the bank said, "Such Basic Savings Bank Deposit Accounts are aimed at encouraging savings without any burden of charges or fees and meant for the poorer sections of society".
Few Features of BSBD A/c
Can be opened singly or jointly. No minimum balance requirement and no cap per se maximum amount in the account.
All online transfer can be effected without any cost.
Interest rate at par with regular savings account.
No account closure or activative charges once the account gets deactivated.
Limitation of BSBD a/c is that the customer cannot open any other account with the bank in case he has the BSBD a/c in his or her name.
4 withdrawals in a month shall be free with charges post the limit applicable @ Rs. 10 on withdrawal at SBI's ATM, Rs. 20 when cash withdrawal is done at other bank's ATM and Rs. 50 from the bank's branch.