SBI charges: Failure to meet the MAB criteria leads to levy of a penalty charge on the customers.Commercial banks such as State Bank of India (SBI) have defined certain rules to ensure sufficient balance in the bank accounts of customers.
SBI requires the holders of its regular savings account to maintain a monthly average balance (MAB) to the tune of Rs 1,000-Rs 3,000, according to the bank's website - sbi.co.in.
The monthly average balance, which is the average of end-of-day balances in the savings account in a month, varies depending on the location of the branch- metro, urban, semi-urban and rural.
A failure to meet the MAB criteria set by the SBI leads to levy of a penalty charge on the customers.
( Latest Fixed Deposit (FD) Interest Rates Offered By SBI)SBI accounts are categorised into four types depending on their location: metro, urban, semi-urban and rural.Customers failing to meet the MAB requirements have to bear a penalty charge, the amount of which depends on factors such as branch location.
The degree of shortfall - the difference between the average balance maintained in a month and the minimum required balance - is also taken into account while levying the charges.Metro and urban branch (required MAB Rs 3,000)ChargesShortfall <= 50%Rs.
10 + GSTShortfall > 50-75%Rs.
12 + GSTShortfall > 75%Rs.
15 + GSTSemi-urban branch (required MAB Rs 2,000)Shortfall <= 50%Rs 7.50 + GSTShortfall > 50-75%Rs 10 + GSTShortfall > 75%Rs.12 + GSTRural (required MAB Rs 1,000)Shortfall <= 50%Rs 5 + GSTShortfall > 50-75%Rs.
7.50 + GSTShortfall > 75%Rs 10 + GST(As mentioned on SBI's website - sbi.co.in)SBI also offers the facility of opening zero balance account, where MAB rule is not applicable.
One of the zero balance accounts offered by SBI is basic savings bank deposit (BSBD) account, where the customer is not required to maintain any minimum monthly balance.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India.
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.