Business

Relief For SBI Customers, Penalty For Not Maintaining AMB Reduced By 75%

NEWS WORLD INDIA | 0
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| March 13 , 2018 , 16:39 IST

SBI, the country's largest bank, has made a huge reduction in penalties for not maintaining Average Monthly Balance (AMB) in Savings Account. State Bank of India has given a relief to its over 25 crore savings account holders by reducing the charges for AMB by 75 percent.

Including SBI, other banks across the country also charge penalties if there are not enough funds in the account. According to the latest information, customers will not have to pay more than 15 rupees plus GST for the penalty.  SBI said that this decision is taken on the basis of responses received from all stakeholders. These new rates will be effective from April 1.

At present, you have to maintain the minimum balance of Rs. 3000 in metro cities in your account. Talking about semi-urban branches, here you have to maintain a balance of 2000 rupees. On the other hand, if we talk about rural areas, you have to maintain a balance of 1000 rupees in your account as a minimum balance. If you maintain a minimum balance of less than 50% in metro cities, at present you have to give 30 rupees plus GST of 5.4 rupees.

Now after applying the new rule from 1 April for SBI customers in metro and urban areas, there will be a penalty of Rs 15 penalty and at the same time, for the semi-urban and rural areas, the penalty has been reduced from Rs 40 per GST to Rs 12 and Rs 10 plus GST. Earlier, SBI reduced the limit of the minimum balance from 5000 to 3000 rupees for metro cities. Along with this, the limit was made to Rs 2000 for the customers of semi-urban branches.

Along with this, the reduction in charges for not maintaining the minimum balance in the metro and urban centers category would also be reduced by 20-50%. Charges of minimizing balance are calculated according to the amount kept in the account.

In fact, when the news came that the SBI did not get the average monthly balance, after receiving a huge amount of Rs 1,771 crore in just 8 months, the bank started facing criticism. The amount recovered from the fine amounted to be more than the profits of the bank's Rs 1,581.55 crore in July-September and nearly half of the net profit of Rs 3,586 crore in April-September.