Just in a span of one month, the country’s largest bank, State Bank of India (SBI) has rolled out several measures that will impact its customers. From lending rate cuts to scrapping penalty on not maintaining minimum average monthly balance in savings bank accounts and removing SMS charges, the SBI has announced several changes that may or may not benefit customers. We have listed out six big changes SBI has announced for its customers recently:

Top 6 changes for SBI customers:

  • Fixed Deposit rates: SBI has recently announced that it is reducing its fixed deposit rates for some tenors. It is the second reduction in a month on SBI’s retail term deposits (less than Rs 2 crore). The reduction is 10-50 basis points for a few tenors. 
  • SBI Home, Car Personal Loan Rates: SBI also announced a reduction in the marginal cost of funds-based lending rates (MCLR). The lending rates have been reduced by 10-15 basis points across tenors. In the current financial year, this will be the tenth cut, the public sector bank has made. The new rates will come into effect from March 10, according to SBI. Upon revision, the MCLR came down to 7.75 per cent which was earlier 7.85 per cent. 
  • Safe-deposit rental charges: The bank, with effect from March 31 this year, will charge higher rentals for safe-deposits. The increase in charges varies from city to city and locker’s size. According to SBI, the range will be between Rs 500 and Rs 3,000. For example, a cost for a small locker in a metro city has gone up to Rs 2,000 from earlier Rs 1,500. Moreover, the hike rate is standard across all branches ie., 33 per cent. 

Also read: Average Monthly Balance in SBI Savings Bank accounts is not required now 

  • Average Monthly Balance (AMB) maintenance waiver: The country’s largest lender has also announced that it is waiving off Average Monthly Balance (AMB) maintenance and it will be applicable for all Savings Bank Accounts. The move came on the back of promoting financial inclusion within the country. 
  • SBI SMS charges: The bank has also waived off SMS charges for customers as a part of its ‘Customers First’ approach.
  • SBI Savings Account Rates: To empower SBI customers towards banking and their confidence within banks, SBI will also be rationalising interest rate to a flat 3 per cent across all Savings Bank Accounts.

Also read: SBI cuts fixed deposit, lending rates

State Bank of India is the largest commercial bank when it comes to the deposits, assets, customers and branches. The bank has reported a deposit base of over Rs. 31 lakh crore as of December 31, 2019.