Govt. asks SBI to roll-back minimum balance penalty

SansadTV Bureau

Two days after State Bank of India put out a notice imposing the penalty for not maintaining the minimum balance in personal accounts, Government of India has asked the SBI to reconsider its decision to levy penalty….

SBI has also been asked to reconsider charges it proposes to levy on cash transactions and ATM withdrawals over specified limits.

“Government has asked SBI to reconsider it’s decision to impose a penalty on non- maintenance of minimum balance in accounts from April 1 onwards,” the source said.

SBIThe government has also urged SBI and other lenders, including private sector banks to “reconsider the charges on cash transactions and ATM withdrawals above a certain limit”.

The country’s largest lender has announced imposing the penalty ranging from Rs 20-100 on non-maintenance of Minimum Average Balance (MAB) in savings bank accounts from April 1. The big brother of Public Sector Banks in India – SBI has over 31 crore savings bank account holders.

The penalty is as high as Rs 500 in the case of current accounts.

The penalty for breach of MAB is being reintroduced after a gap of five years.

The bank has also increased the minimum balance requirement by many times, which is as high as Rs 5,000 for an account maintained with branches in six metro cities.

SBI has also imposed restrictions on withdrawals of cash from its branches as well as ATMs. These will attract charges after certain specified limits.

Some private banks, like HDFC Bank, ICICI Bank, and Axis  Bank, have started charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.