Also, many students and underprivileged customers lost their balances because of wrongful classification of their accounts as regular savings accounts.
The AMB is the minimum balance customers are required to maintain in their bank accounts, which SBI had re-introduced in April 2017 after a lag of six years. This revision in the prices is likely to benefit a total of 25 Crore bank customers.
As The Wire has reported, during April-November 2017, SBI collected Rs 1,771 crore in penal charges from its customers, which was more than its net profit of Rs 1,581.55 crore for the same period.
Jan Dhan Yojana accounts, basic savings bank deposits accounts (BSBD), pensioners, beneficiaries of social benefits from the government and accounts of minors are exempted from complying with the minimum balance requirement. However in October, it had revised down the charges to some extent. The rates of monthly average balance is Rs 3,000 for metros, Rs 2,000 for semi-urban areas and Rs 1,000 for rural areas.
At present, you have to maintain the minimum balance of Rs. 3000 in metro cities in your account.
The bank offers its customers the option to shift from regular savings accounts to BSBD accounts on which no charges are levied, he added.
It slashed service charges for non-maintenance of AMB by 20-50%.
Last month, Kumar had said savings accounts are a product in which it is expected that some money would be available and transactions will take place.
The State Bank has 41 crore savings bank accounts. The charges for non-support of AMB for clients in Metro and Urban focuses have been lessened from a most extreme of Rs 50 every month to Rs 15 every month. "Somewhere the bank also needs to recover its cost", he had said.
Following the footsteps of private sector peers, State Bank of India (SBI) in April previous year set up high minimum balance requirements and imposed steep penalties on customers who failed to meet these requirements.
This is unedited, unformatted feed from the Press Trust of India wire.