After a gap of almost five years, the country’s largest lender, State Bank of India has come up with new rules for its savings and salary account holders. The new rules have been implemented from 1st April, 2017.
Here are the changes to the existing rules that you should know about.
How much minimum balance do I need to maintain in my account?
The bank has increased the Monthly Average Balance (MAB) requirement for savings account to as high as Rs. 5,000 for branches in metro cities. For urban, semi-urban and rural areas it has been fixed at Rs. 3,000, Rs. 2,000 and Rs. 1,000, respectively.
Earlier, the MAB for a savings bank account was capped at Rs. 500 without facility of cheque book and Rs. 1,000 with cheque book, across the country. However, the bank has now decided to fix separate MABs for metro, urban, semi-urban and rural areas from the beginning of this financial year.
Am I liable to pay any charges if I don’t have the required amount?
In case you fail to maintain the monthly balance limit, the bank will be liable to charge a penalty fee of Rs. 100 for metro cities, Rs. 50 for semi-urban and Rs. 20 for rural areas. Such penalties are not applicable on Surabhi, Basic Savings Bank and PM Jan Dhan Yojana accounts.
What are the new limits On cash transactions?
Withdrawal of cash from ATMs will attract a charge of up to Rs. 20 if the number of transactions exceeds three. This is for transactions made at ATMs other than SBI, in a month. The charge will be Rs. 10 for more than five withdrawals from SBI ATMs as prescribed by Reserve Bank of India (RBI). After demonetisation, more than 3 transactions in metros and 5 in non-metros are chargeable according to RBI directives.
However, SBI will not levy any charge on withdrawals from its own ATMs if the balance exceeds Rs. 25,000. In case of other banks’ ATM there will be no penalty if the balance exceeds Rs. 1 lakh. The move has been made to compensate for operational costs incurred while managing Jan Dhan accounts and operating ATMs.
What are the charges on depositing cash in my account?
You are allowed to deposit cash in your savings bank account three times a month, free of charge. Post that a fee of Rs. 50 plus service charge would be levied on every transaction.
Are there any other charges that I should be aware of?
Yes, there are couple of other charges that you should keep note of before availing SBI’s banking services.
Increased Locker Rent: The bank has increased locker rent and reduced number of locker transactions that are free in a year. After 12 transactions, the customer now has to pay Rs. 100 excluding service tax applicable for visiting his or her locker.
Cheque Leafs: As far as cheque books are concerned, for a current account holder, the first 50 cheques will be provided free in a financial year; thereafter, it will cost Rs. 3 per leaf. A 25-leaf cheque book now costs Rs 75 and a 50-leaf cheque book will set you back by Rs. 150 excluding service tax.
Enrolment Fee: SBI will now charge Rs. 20 as opening fee including enrolment for savings account.
SMS Alerts: The bank will charge Rs. 15 for SMS alerts per quarter for Debit Card holders who maintain an average quarterly balance of up to Rs. 25,000 during the three months period. Also, there will be no charge for UPI/ USSD transactions of up to Rs. 1,000.
Even customers of the six affiliate banks that merged with SBI including State Bank of Jaipur and Bikaner, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore will have to follow these rules. So, if you have a bank account with any of these banks, brace yourself. You might have to shell out a little extra from this financial year.