SBI to hike minimum balance for savings a/c

State Bank of India has decided to increase manifold the minimum balance required for maintaining savings account from April 1, hitting 31 crore depositors including pensioners and students.

SBI has 31 crore savings bank accounts. 

 

As of now, monthly average balance (MAB) for a savings bank account is Rs 500 without facility of cheque book and Rs 1,000 with cheque book across the country. India's largest bank has now decided to fix separate MABs for 'metro', 'urban', 'semi-urban' and 'rural' areas from the beginning of next financial year. 

 

The benchmark for MAB and penalties are likely to be followed by other public sector banks. MAB for metro branches will be Rs 5,000 and penalty for non-maintenance of minimum balance will be between Rs 50 and Rs 100. 

 

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For urban and semi-urban branches, the MAB has been fixed at Rs 3,000 and Rs 2,000 respectively. In case of rural branches, the minimum balance has been fixed at Rs 1,000. Breach of MAB will attract a penalty ranging between Rs 20 and Rs 50.