State Bank of India, the country's largest public-sector lender, has provided good news to its clients. Recently, SBI announced that it will lift the minimum balance rule. This means that SBI customers do not have to follow the minimum balance.
"State Bank of India has decided to waive maintenance of Average Monthly Balance (AMB) for all Savings Bank Accounts," the bank's press release stated. This has lifted the provision and has led to a huge influx of clients. From now on all SBI customers will enjoy the zero balance facility in their savings bank accounts. This, according to the press release, will benefit 44.51 crore savings account, holders.
SBI Savings Bank Customers are required to keep a minimum balance of Rs 3000 in metro cities, 2 thousand in semi-urban cities and Rs 1,000 in rural areas. Further, the bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of average monthly balance as stated above.
Also, the interest rate on savings accounts fixed at 3%. The bank has also waived off SMS charges levied on a quarterly basis.
The bank has also rationalized interest rates on savings accounts to a flat 3 per cent per annum. Previously, savings accounts with a balance of less than Rs 1 lakh earn 3.25 percent a year, while those with more than Rs 1 lakh earn 3 per cent. The average monthly balance charges have been cancelled out of a total of 44.51 crores SBI accounts as part of financial inclusion in the country. It also cancelled SMS charges. It's a piece of impressive news from SBI.