State Bank of India has recently updated their minimum balance requirements for various accounts. It has also specified the penalties charged for non-maintenance of the specified minimum balance.
In this article, we will discuss the SBI minimum balance requirements and penalties for savings accounts, current accounts, and salary accounts.
For the latest updated rules and penalty charges, please refer to this article.
RBI has now allowed banks to charge customers for non-maintenance of Monthly Average Balance (MAB) in savings accounts. MAB is the average of the daily balances in an account in a month. The MAB is different for account holders in metro, urban, semi-urban, and rural branches. The following table specifies the different MAB requirements:
| Type of Branch | Monthly Average Balance Requirement |
| Metro | Rs.5000 |
| Urban | Rs.3000 |
| Semi-Urban | Rs.2000 |
| Rural | Rs.1000 |
The penalty charged depends on the amount of shortfall. The following table explains it in detail:
| Description of Shortfall | Penalty Charged |
| Metro (MAB – Rs.5000) | |
| Shortfall is equal to or less than 50% of MAB | Rs.50 + GST |
| Shortfall is greater than 50%, but equal to or less than 75% | Rs.75 + GST |
| Shortfall is greater than 75% of MAB | Rs.100 + GST |
| Urban (MAB – Rs.3000) | |
| Shortfall is equal to or less than 50% of MAB | Rs.40 + GST |
| Shortfall is greater than 50%, but equal to or less than 75% | Rs.60 + GST |
| Shortfall is greater than 75% of MAB | Rs.80 + GST |
| Semi-Urban (MAB – Rs.2000) | |
| Shortfall is equal to or less than 50% of MAB | Rs.25 + GST |
| Shortfall is greater than 50%, but equal to or less than 75% | Rs.50 + GST |
| Shortfall is greater than 75% of MAB | Rs.75 + GST |
| Rural (MAB – Rs.1000) | |
| Shortfall is equal to or less than 50% of MAB | Rs.20 + GST |
| Shortfall is greater than 50%, but equal to or less than 75% | Rs.30 + GST |
| Shortfall is greater than 75% of MAB | Rs.50 + GST |
Note –
For example – If the shortfall (required MAB minus actual current MAB) in a metro branch savings account is Rs.2400, the penalty charged will be Rs.50 plus 18% GST.
SBI offers zero balance salary accounts. It also offers a host of other benefits to salary account holders under its Corporate Salary Package scheme. Hence, there is no MAB requirement, or penalty charge.
The MAB requirement, and penalty charged, for types of SBI current accounts is as follows:
| Type of Current Account | MAB | Penalty for Non-Maintenance of MAB |
| Current Account (for all segments) | Rs.10,000 | Rs.500 + GST per month |
| For other Current Account (CA) Variant Products | ||
| Power Pack | Rs.5,00,000 | Rs.2,500 + GST per month |
| Power Grain | Rs.2,00,000 | Rs.1,500 + GST per month |
| Power POS (for POS a/c) | Rs.5,000 | Rs.500 + GST per month |
| Power Jyoti (Collection a/c) | Rs.50,000 | Rs.1,000 + GST per month |
| Surabhi (Auto Sweep) | Rs.10,000 | Rs.500 + GST per month |
MAB requirement is quite high for a lot of these accounts. And the penalty charges can seem very steep. Hence, the best way to avoid the penalty is to keep a careful check on the balance in your account. Since the monthly average is taken into account, daily balance is important.
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