SBI- No Monthly Minimum Balance in Savings Accounts

 

SBI- No Monthly Minimum Balance in Savings Accounts

As a major step forward towards Customer retention and acquisition, State Bank of India has decided to remove the stipulation of maintaining a minimum Average Quarterely Balance (AQB) for all Personal Segment Savings Bank Account holders across all thier branches. Thus there will be no Service Charge for Non Maintenance of minimum balance stipulations (AQB) in SB account of Personal Segment customers. Branches were advised to use approved publicity material to the effect and to have them displayed prominently on branch premises. In a preceding circular sent only the day before, the bank ordered refund of charges for non-maintenance of minimum balance 'of personal segment' customers. This was aimed at setting right an earlier order that sought to apply charges for non-maintenance of minimum balances on all eligible accounts for the quarter ended March 31, 2012.

Further, while opening a Savings Bank Account minimum amount to be deposited has also been reduced to Rs 100/- , except in case of 'No Frills Account', where the minimum deposit is Rs.50/-.

 On the reverse ICICI Bank, HDFC Bank, Axis Bank has instructed his customer to maintain average minimum balance on Monthly basis instead of Quarterly Basis. Means Now you have to pay charges if you have failed to maintain average monthly minimum balance. As per earlier instructions if customer maintains average quarterly balance more than the limit prescribed then no charges is to debited.

Average Minimum Balance required

Sr No	Bank	Metro	Urban area	Rural areas
1	ICICI BANK	10000	5000	2000
2	HDFC BANK	10000	5000	5000
3	AXIS BANK	10000	5000	2500

These private sector lenders have also tweaked the penalty charge for non-maintenance of minimum monthly balance. Charges for HDFC Bank and ICICI Bank range between Rs 250 and Rs 350; while, those of Axis Bank are Rs 750 (metro and semi-urban) and Rs 500 (rural).

Best Regards

Prakash Nair