Now SBI customers have even more cause to celebrate: The lender has chose to lower the penalty further, to just Rs 15, plus GST, per month for customers in the metros and urban centres.
Similarly, for semi-urban and rural centres, the charges have been reduced to Rs 12 and Rs 10 per month, respectively, from Rs 40 per month.
The move will benefit 25 crore customers of the bank. In the big cities, account holders have to keep at least 5,000 rupees, account holders in urban areas, 3,000 rupees, account holders in small towns and Rs. 1,000 in rural areas to keep a minimum amount of 1,000 rupees.
The features of BSBD accounts are available on the bank's website bank.sbi.
The finance ministry data showed the bank charged Rs 1,771.67 crore from customers on account of non-maintenance of minimum average balance between April and November 2017. Correspondingly for Semi-Urban and Rural focuses, the charges have been decreased from Rs 40 consistently to Rs 12 and Rs 10 GST charges will be material well beyond the rates indicated previously. The alternative is to continue paying steep penalties, at least till the RBI forces all public and private banks to follow SBI's lead. The public sector lender faced widespread flak for its minimum account balance charges, which were seen as hitting mostly financially weaker account holders. Charges of minimizing balance are calculated according to the amount kept in the account. The rate of interest is same as savings bank account.
So his MAB would be (Rs 70,000+Rs 42,000) divided by 28, i.e. Rs 4,000.
Shifting to BSBD account is even more convenient and flexible, because there is no charges levied by SBI on them. The amount was also almost half of the Rs 3,586 crore the bank earned as net profit from April to September. The bank clarified that customers always had the option of converting the regular savings bank accounts to basic savings bank account (BSBD account) to avoid incurring charges for non-maintenance of account balance.