Thursday 8 February 2018

Bad news for SBI customers, such a penalty can take on minimal balance

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Bad news for SBI customers, such a penalty can take on minimal balance

There is bad news for SBI customers who are looking for relief on minimum balance. If the account holders of SBI do not maintain the minimum balance set, they will have to pay the penalty. For the country’s largest bank account holders, the minimum rule required for minimum balance will be applicable. However, these rules will vary in different types of branches. In the case of Minimum Balance, whose penalties appear in the account, depending on the average minimum balance.

Regarding the minimum balance requirement, SBI has divided its own branches into 4 types. Metro, Rural, Urban and Semi Urban On the account holders of Urban and Metro Branches, the minimum and average balance rules of 3000 will be applicable as before.

Earlier it was hoped that SBI can relieve the minimum balance conditions in the government’s pressure. Earlier it was said that the bank can make minimum balance of around Rs.1000. SBI increased the minimum balance to Rs 5000 in June last year. However, later the minimum balance was reduced to 3000 in metro cities, 2000 in semi-urban and Rs 1000 in rural areas. This limit was reduced for minors and pensioners. Penalty was reduced from 25-100 to 20-50 rupees.

It is to be noted that the minimum balance limit in SBI is lower than that of other public sector banks and big private banks. Minimum balance limit in ICICI, HDFC, Kotak and AXIS bank’s metro account is Rs. 10,000

At present, SBI has levied a penalty of 1172 crores for customers due to non-maintenance of minimum balance between April and November 2017.

Too many penalties will be paid:

For not maintaining minimum balance in metro and urban branches, it will have to pay GST along with a penalty of between 30 and 50 rupees. Penalty for half urban and rural branches is GST from Rs 20 to Rs 40. However, the penalty is fixed on how much the minimum balance is.

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