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Last week SBI announced some reductions in its minimum balance requirements as well as penalties charged. The new SBI minimum balance rules will be effective from 1st October. SBI has also waived the minimum balance requirement for students and senior citizens.

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SBI Minimum Account Balance MAB Rules 2017

The MAB (Monthly Average Balance) requirements are different for different types of branches. 

(Some of these have been revised, and some remain the same as before.)

Type of Branch	Monthly Average Balance Requirement
Metro	Rs.3000
Urban	Rs.3000
Semi-Urban	Rs.2000
Rural	Rs.1000

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Penalty & Charges for non-maintenance of MAB in SBI

The penalties charged for non-maintenance of MAB depends on the actual MAB maintained. SBI has reduced most of the penalty amounts.

Description of MAB (Monthly Average Balance)	Penalty Charged
Metro (MAB requirement – Rs.3000)
MAB is between Rs.2999 and Rs.1500	Rs.30 + GST
MAB is between Rs.1499 and Rs.750	Rs.40 + GST
MAB is below Rs.750	Rs.50 + GST
Urban (MAB requirement – Rs.3000)
MAB is between Rs.2999 and Rs.1500	Rs.30 + GST
MAB is between Rs.1499 and Rs.750	Rs.40 + GST
MAB is below Rs.750	Rs.50 + GST
Semi-Urban (MAB requirement– Rs.2000)
MAB is between Rs.1999 and Rs.1000	Rs.20 + GST
MAB is between Rs.999 and Rs.500	Rs.30 + GST
MAB is below Rs.500	Rs.40 + GST
Rural (MAB requirement – Rs.1000)
MAB is between Rs.999 and Rs.500	Rs.20 + GST
MAB is between Rs.499 and Rs.250	Rs.30 + GST
MAB is below Rs.249	Rs.40 + GST

Notes:

1. The bank will still charge GST over and above the fine.
2. The following accounts are exempt from maintaining MAB –

• Financial inclusion accounts
• Basic savings bank deposit accounts
• Small accounts
• Plela Kadam and Pheli Udaan accounts
• Accounts of minors till the age of 18
• Accounts of all pensioners including recipients of social welfare benefits.

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SBI reduced the MAB as well as penalties for some branches because customers were troubled by the recent hike. Hopefully this will offer some respite to the customers.