Reacting sharply to the recent news reports regarding charges for non-maintenance of Average Monthly Balance (AMB) — in which it was alleged that about 21 public sector banks and 3 major private sector banks collected a whopping Rs 5,000 crore from customers for non-maintenance of minimum balance in their accounts in 2017-18, and the State Bank of India (SBI) led the pack in penalising customers by collecting nearly half the amount raised by the 24 banks put together (Rs 4,989.55 crore) – SBI, India’s largest bank, on Monday said that its charges for non-maintenance of average monthly balance were one of the lowest in the banking industry.
“With reference to the recent news reports in media regarding charges for non-maintenance of Average Monthly Balance (AMB), the bank would like to reiterate that effective April 2018 AMB requirement is reduced up to 40% keeping in view the feedback from various stakeholders. Similarly, the bank has steeply reduced charges for non-maintenance of AMB up to 70% in Metro / urban and Semi-urban categories. Charges in rural market were also reduced by up to 75%. SBI’s charges for non-maintenance of AMB are one of the lowest in the industry,” the bank said in a press release here.
The bank also clarified that savings bank accounts such as PMJDY / BSBD and pensioner, minors, and social security benefit holders accounts are exempted from AMB requirement and no charges are recovered from these accounts. “The bank has around 42.5 cr Savings Bank accounts, of which almost 40% accounts are under the exempted category. Customers also have the option to convert their existing savings accounts to the BSBD accounts, free of cost,” it stated.