SBI said that its Basic Savings Bank Deposit accounts offer same interest rates as its other savings bank accounts but do not charge any penalty for not maintaining monthly average balance. The Basic Savings Bank Deposit account of SBI has no monthly average balance requirement, SBI said.
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The state-owned lender also said that those who want to avoid paying monthly average balance non-maintenance charges, can convert their regular savings account to basic savings bank deposit account without any cost.
Eligibility criteria to open the Basic Savings Bank Deposit account are same as it is there in case of regular savings bank account. However, the customer cannot have any other savings bank account if he/she has a Basic Savings Bank Deposit Account, SBI said.
There are also some limitations in this account. Customers of these accounts are allowed to do only four free withdrawals in a month, including ATM withdrawals at own and other bank ATMs and transactions through other modes including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMIs debit etc.
After the four free ATM withdrawals, customers of Basic Savings Bank Deposit Account will be charged Rs. 50 plus tax for cash withdrawal at an SBI branch, Rs. 20 plus tax at other bank ATMs and Rs. 10 plus tax at SBI ATMs, SBI said.
Last week, SBI also said that it is reviewing charges for certain categories of accounts for non-maintenance of monthly average balance (MAB) after receiving feedback from customers.
In April this year, SBI reintroduced charges on non-maintenance of monthly average balance (MAB) after a gap of five years. “We have received feedback from our customers on the issue and we are reviewing those. The bank will take into account those and make an informed decision,” SBI managing director (national banking group) Rajnish Kumar told news agency Press Trust of India.
SBI currently charges a penalty of up to Rs. 100 (plus GST of 18 per cent) per month for not maintaining monthly average balance (MAB) in savings bank accounts. Customers holding SBI savings bank accounts in metro, urban, semi-urban and rural branches need to pay different penalty amounts for non-maintenance of monthly average balance, according to SBI’s website.