State Bank of India (SBI), the largest lender of the country, levies certain charges if customers fail to maintain minimum balances in their savings accounts. However, at the same time, it has several savings accounts which do not require maintenance of any minimum balance. Earlier, when SBI invited criticism for charging more than its quarterly profit from penalties levied on failure to maintain minimum balances, the lender had slashed its minimum balance penalty charges for the convenience of its customers.
Given below are details on SBI minimum balance 2018 rules and zero balance accounts of SBI:
Minimum balance in SBI savings account 2018
SBI accounts are divided on the basis of branch locations into the following four categories: metro, urban, semi-urban and rural branches. The average monthly balance (AMB) requirements of SBI savings accounts vary on the basis of these branches.
SBI savings accounts in metro and urban branches are required to maintain an average monthly balance of Rs 3,000. SBI savings accounts in semi-urban branches are required to maintain an average monthly balance of Rs 2,000. SBI savings accounts in rural branches are required to maintain an average monthly balance of Rs 1,000.
|SBI branch type||Average monthly balance requirement|
SBI minimum balance penalty charges
SBI minimum balance penalty charges on metro, urban accounts
If the average monthly balance in an SBI metro and urban savings account is less than or equal to 50 per cent of the required AMB, the penalty charge is Rs 10 + GST (goods and Services Tax). If the shortfall is more than 50-75 per cent of the required AMB, SBI levies a penalty of Rs 12 + GST. If the shortfall in the account is more than 75 per cent of AMB, the charge levied is Rs 15 + GST.
SBI minimum balance penalty charges on semi-urban accounts
If shortfall in a semi-urban account is less than or equal to 50 per cent of the required AMB, SBI charges Rs 7.50+ GST. If shortfall in the account is more than 50-75 per cent of the required monthly average balance, the penalty levied is Rs 10 + GST. If shortfall in the account is more than 75 per cent of the required AMB, SBI charges a penalty of Rs 12 + GST.
SBI minimum balance penalty charges on rural savings accounts
If shortfall in an SBI rural savings account is less than or equal to 50 per cent of the required AMB, the lender charges Rs 5 + GST. If the existing amount maintained in the account is less than 50-75 per cent of the required AMB, SBI levies a penalty of Rs 7.50 + GST. If shortfall is more than 75 per cent of the required AMB, the charges levied are Rs 10 + GST.
|Branch type||Shortfall in average monthly balance||Penalty charges (excluding GST) for non-maintenance of required AMB|
|Metro and urban||<=50%||Rs. 10|
|> 50-75%||Rs 12|
|> 50-75%||Rs 10|
|> 50-75%||Rs 7.5|
Zero balance SBI savings accounts that do not require maintenance of minimum balance
The requirement to maintain a monthly average balance is not applicable to the
Savings accounts opened for the purpose of financial inclusion including Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts: The Pradhan Mantri Jan-Dhan Yojana (PMJDY) ensures access of various financial services to weaker sections and low-income groups. SBI savings accounts opened under the scheme are absolved of minimum balance requirements.
No frill accounts – Customers opening no frill accounts cannot maintain balances exceeding Rs 50,000.
Salary Package accounts – SBI offers an entire range of salary accounts for varied sectors, such as central government, state government, defence forces, paramilitary forces, police forces, corporates/ institutions etc.
Basic Savings Bank Deposit accounts: BSBD accounts target poor sections of society to encourage them to start saving without any burden of charges or fees. This account can be opened by any individual provided he/she has valid KYC (know your customer) documents. KYC norms help banks verify the identity of their customers.
BSBDA- Small Accounts: This account can be opened by any individual above 18 years of age. The person need not submit officially valid KYC documents.
Pehla Kadam and Pehli Udaan accounts: Both these accounts are meant for minors. Pehla Kadam SBI accounts are jointly opened with the parent/guardian. Pehli Udaan SBI accounts can be opened by minors above the age of 10 years and who can sign uniformly. This account can be opened in the sole name of the minor.
Minors up to the age group of 18, pensioners under all categories, recipients of social security welfare benefits, who receive direct benefits (cash transfers) in their accounts, and students up to the age of 21 years, are not required to maintain any minimum balance in SBI savings accounts.
Source: NDTV Profit