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SBI Likely to Slash Minimum Balance Requirement for Savings Accounts Following Public Backlash

SBI had initially raised the minimum balance requirement to Rs 5,000 in June. However, following public discontent the bank brought down the minimum balance requirement to Rs 3,000 in metros, Rs 2,000 in semi-urban and Rs 1,000 in rural centres.

News18.com

Updated:January 5, 2018, 12:06 PM IST
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SBI Likely to Slash Minimum Balance Requirement for Savings Accounts Following Public Backlash
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New Delhi: The State Bank of India is likely to reduce the minimum balance requirement to Rs 1,000 from the current Rs 3,000 in urban areas.

SBI had initially raised the minimum balance requirement to Rs 5,000 in June. However, following public discontent the bank brought down the minimum balance requirement to Rs 3,000 in metros, Rs 2,000 in semi-urban and Rs 1,000 in rural centres.

The charges were re-introduced after a gap of five years during the current financial year.

India’s largest bank suffered a huge backlash last week when the finance ministry data revealed that it collected Rs 17.72 billion, more than its second-quarter profit, from customers for non-maintenance of monthly average balance in savings accounts in eight months of the financial year 2017-18.

SBI is also changing the requirement from monthly average balance to quarterly average balance.

While SBI’s current Rs 3,000 minimum balance requirement for urban areas is highest among all PSBs, it is the lowest among all large private banks.

State Bank of India has close to 405 million savings account customers. "On a balance of Rs 3,000 in metro, SBI earns Rs 6 only per month whereas for a minimum balance of Rs 1,000 in rural, bank earns Rs 2 per month which is meagre when compared to the services offered and corresponding costs incurred by the bank (free chequebook, 8 free ATM transactions, free branch transactions)," the state-owned lender said in a statement.

| Edited by: Ananya Chakraborty
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