SBI to impose penalty for not maintaining minimum balance

File photo of a SBI branch outside India.

When Major Private Banks in the country are levying hefty sums on Cash Deposits and Withdrawals, largest Public Sector Bank- State Bank of India announced fine for not maintaining a minimum balance in amount.

SBI on Friday released a statement conveying that its account-holders will be penalized for not maintaining a minimum balance from April 1 onwards.

In a statement on its website, the bank had listed out charges to be made effective from April 1.
For metropolitan areas, the mandatory minimum balance will be Rs 5,000. In urban, semi-urban and rural areas, the charges will be Rs 3,000, Rs 2,000 and Rs 1,000 respectively.

SBI Chief Arundhati Bhattacharya.

These charges will be based on the difference between the minimum balance required and the shortfall.
For instance, if the shortfall in metropolitan areas is more than 75 per cent, the charges would be Rs 100 plus service tax.
According to bank’s notification of the new charges, if the shortfall is between 50-75 per cent, the bank would charge Rs 75 plus service tax.

If the shortfall is below 50 per cent, a charge of Rs 50 plus service tax would be levied. For rural areas, the penalty ranges from Rs 20-50 plus service tax, the bank notification said.

Additionally, the bank also said it would renew from April 1, the Rs 50 charge for customers carrying out more than three cash transactions at its branch within a month. However, this charge is applicable currently as well.

 

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