Govt directs SBI to review its decision over minimum balance penalty
स्रोत: News Bharati English      तारीख: 07-Mar-2017

New Delhi, March 7: The Centre has asked the State Bank of India to reconsider its decision to impose a penalty on non-maintenance of minimum balance in accounts from 1st April onwards. After the gap of five years, SBI has reintroduced the penalty on non-maintenance of minimum balance in accounts.According to sources, the Government has also urged various banks, including private banks to reconsider the charges on cash transactions and ATM withdrawals above a certain limit. As per revised charges of SBI, failure to maintain Monthly Average Balance (MAB) in accounts will attract penalty of up to 100 rupees plus service tax.

Earlier, a senior SBI official said the bank had suspended levying charges on breach of minimum balance requirements in 2012 to acquire new customers. The charges are now being reintroduced from April 1. The Reserve Bank has permitted banks to levy charges for breaching minimum balance limit.

The country's largest bank will permit Savings Bank account holders to deposit cash three times a month free of charges and levy 50 rupees plus service tax on every transaction beyond that. Also withdrawal of cash from ATMs will also attract a charge of up to Rs 20 if the number of transactions exceeds three from other bank's ATMs in a month and Rs 10 for more than five withdrawals from SBI ATMs.

However, SBI will not levy any charge on withdrawals from its own ATMs if the balance exceeds Rs 25,000. In the case of other banks' ATM, there will be no charge if the balance exceeds Rs 1 lakh. Now SBI will also charge 15 rupees for SMS alerts per quarter from debit card holders. However, there will be no charge for UPI and USSD transactions up to one thousand rupees.