Government Asks SBI To Review Penalty On Breach Of Minimum Balance
[2023-03-28 05:51:05]
According to a person familiar with this issue, the government asked the Indian Central Bank (SBI) to reconsider penalties for not maintaining the minimum balance on Monday.
As early as that day, SBI will increase the minimum balance required to maintain a savings account from April 1, affecting over 3.1 billion bank account holders, including pensioners and students Said it had decided. Fines for breach of MAB plan will be reintroduced after 5 years
For accounts with branches in six major cities, the bank raised the minimum balance requirement by Rs 5,000.
SBI and its five employees' savings account holders (merged on April 1) must maintain a monthly balance. Otherwise they will charge a fine of Rs 100 (regional branch) to 100 rupees (big city)
As of now, the average monthly balance (MAB) of savings accounts is 500 rupees, there is no check book, there are 1000 rupees check books nationwide.
The biggest bank in India will decide to arrange separate MABs for each area of "Metro", "City", "Half City", "Rural Area" from the next fiscal year.
The MAB of the subway branch will be Rs. 5,000, and if you do not maintain the minimum balance the fine will be from Rs. 50 to 100 Rupees. In urban and sub-urban branches, MAB is fixed at 3,000 Indian Rupees and 2000 Indian Rupees respectively.
In the case of local branches, the minimum balance is fixed at 1,000 rupees. Violating MAB, a fine of Rs. 50 to Rs. 50 will be imposed.
The country's largest bank also imposes restrictions on cash withdrawals from its affiliates and automated teller machines (ATMs). These will attract the cost after certain restrictions
According to sources, the government urged SBI and other lenders (including private banks) to review cash transactions and ATM withdrawals exceeding a certain limit.
Some private banks such as HDFC Bank, ICICI Bank, Axis Bank, etc. make at least 150 rupees per transaction, cash deposits and withdrawals with four free transactions a month.
On Monday, the government asked Indian Central Bank (SBI) to reconsider the decision to not support the minimum balance of accounts since April 1 based on source. It also requests banks, including private banks, to review cash transactions and ATM withdrawals exceeding certain limits. This is because the National Bank of India, the largest bank in India, did not maintain the monthly average balance of the account, so we decided to restore the cost of the savings account holder. According to the PTI report, the bank had canceled the minimum balance standard of savings bank account several years ago to attract new customers. According to the document, the monthly average monthly balance (MAB) service fee that is not under maintenance will be revised from April 1, 2017.
Providing Consumer Support: The government asked the SBI to review the fine and asked the bank to reexamine the transaction costs
National Bank of India (SBI) said on Friday that it is considering changing the minimum balance and fine of that account. As a result of collective counterattacks from customers that SBI failed to maintain the monthly average balance of savings accounts during the eight months from 2017 to 18, this move exceeded 1,771.67 rupees (the second quarter It was more than profit). Currently, banks have different monthly average balance (MAB) requirements for accounts held in different types of branches. These are subway, village, city and half city
As early as that day, SBI will increase the minimum balance required to maintain a savings account from April 1, affecting over 3.1 billion bank account holders, including pensioners and students Said it had decided. Fines for breach of MAB plan will be reintroduced after 5 years
From 1st April, SBI ordered to maintain a minimum balance of at least 5,000 rupees in savings bank accounts in big cities, 3,000 rupees in urban areas, 2,000 rupees in medium cities and 1,500 rupees in rural areas. He stated that the remaining fine will