Almost everyone in today’s time have bank accounts but if one goes through balance sheets, most account holders fail to maintain the minimum balance as stated by the respective banks. Most people aren’t aware of the penalties it attracts or tend to ignore it which proves beneficial for the bank. Let’s talk about State Bank of India (SBI) where most people own an account and rules underlined by it when it comes to maintaining average balance.
If you are a (SBI) account holder, you got to be aware of certain key points in order to avoid penalties. According to the new rules laid down, Savings Bank account holders need to maintain a Monthly Average Balance (MAB) which will vary depending on the branch’s location. MAB is the average of end of day balance in the S/B each month. There are four categories under which the bank has divided has divided its branches- Urban, Semi-Urban, Rural and Metro.
SBI customers living in metro and urban areas need to maintain a MAB of INR 3,000 failing which, will attract a penalty of INR 10-15 + GST. Customers operating accounts out of semi-urban are to maintain a MAB of INR 2,000 failing which a penalty of INR 7.5-12 + GST will be applicable. For those in rural areas, the cap has been set at INR 1,000 and attracts a fine of INR 5-10 +GST. The nation’s largest and oldest bank also offers zero balance facility which protects the customers from attracting fines for non-maintanance of MAB.