SBI waives off the minimum balance charges on the saving accounts

The State Bank of India, which is India’s largest bank has announced that it will waive charges for non-maintenance of the average monthly balance (AMB) for all the 44.51 crore saving bank accounts. Right now, SBI savings bank the customers need to maintain an average monthly balance of ₹3000 in a metro city, ₹2000 in the semi-urban city, and ₹1000 in the rural areas. Banks levy a penalty tax of ₹5 to ₹15 plus on non-maintenance of the average monthly balance. 

SBI has also waived off the SMS charges. They have also rationalized the interest rate on the savings bank account to a flat 3% per annum for all the buckets. According to the current status, the interest rate on SBI saving accounts is 3.25% and 3% for the deposits up to ₹1 lakh and above ₹1 lakh respectively. According to the chairman Rajnish Kumar, “This announcement will bring in more smiles and delight to our valuable customers. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI.”  

In terms of the assets, deposits, branches, customers, and employees, SBI is the largest commercial bank. SBI is also the largest mortgage lender in the country. Till December 31, 2019, the bank has a deposit base of over Rs. 31 lakh crore with a total of 21,959 branches in India. SBI had announced a cut in its MCLR or marginal cost of fund-based lending rate by up to the 15 basis points across the various tenors effective by March 10, this move will make home and auto loans cheaper. The one-year MCLR has been reduced by SBI by 10 basis points to 7.75% from 7.85%. This is the 10th consecutive cut in MCLR by the bank in the current fiscal. SBI has cut interest rates on fixed deposits on 11th March 2020 for the second time in a month. The revised rates had come into effect from 10th March.