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Saturday, April 1, 2017

SBI's minimum balance, ATM charges kick in today: Here's what you should know

By Anulekha Ray, ECONOMICTIMES.COM | Updated: Apr 01, 2017, 02.10 PM IST
After a gap of five years, State Bank of India, India's biggest lender, will start charging penalty on non-maintenance of minimum balance in accounts. It has also has revised charges on other services, including ATMs. 

So, if you are an SBI customer, here's what you need to know: 


How much minimum balance should I have? 

For metro cities, the minimum balance is Rs 5,000. In urban, semi-urban and rural areas, the charges will be Rs 3,000, Rs 2,000 and Rs 1,000, respectively. 

What if I don't have the stipulated balance? 

As per the list of revised charges of SBI, failure to maintain Monthly Average Balance (MAB) in accounts will attract penalty of up to Rs 100 plus service tax. 

In metro cities, there will be a charge of Rs 100 plus service tax, if the balance falls below 75 per cent of the MAB of Rs 5,000. If the shortfall is 50 per cent or less of the MAB, then the bank will charge Rs 50 plus service tax. 

For rural areas, the penalty ranges from Rs 20-50 plus service tax, t .. 

On depositing cash in accounts 

Savings account holders are allowed to deposit cash in their accounts three times a month free of charge and a charge of Rs 50 plus service charge would be levied on every transaction beyond that. 

On withdrawal from ATMs 

Withdrawal of cash from ATMs will attract a charge of up to Rs 20 if the number of transactions exceeds three from different bank's ATM in a month and Rs 10 for more than five withdrawals  from SBI ATMs. 

However, SBI will not levy any charge on withdrawals from its own ATMs if the balance exceeds Rs 25,000. In case of other banks' ATM there will be no charge if the balance exceeds Rs 1 lakh. 

On SMS alerts 
SBI will charge Rs 15 for SMS alerts per quarter from debit card holders who maintain average quarterly balance of up to Rs 25,000 during the three months period. There will be no charge for UPI/ USSD transactions of up to Rs 1,000. 

Key point 

The new charges are applicable even if your account is in any of the five associate banks - State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP), and State Bank of Hyderabad (SBH) - or the Bharatiya Mahila Bank. This is because all these banks are getting merged with the SBI effective Saturday. 


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