SBI revised MAB: Five things that you must know about this move by SBI

State Bank of India (SBI), in a huge benefit to some 5 crore customers, has waived the monthly balance requirements in metro and urban centres to Rs. 3,000 from Rs. 5,000 on Monday. SBI has decided to treat the metro and urban centres in the same category, the bank said in a release. It also stated that "the charges have also been revised downward ranging from 20 per cent to 50 per cent across all population groups and categories." The decision, as per the bank, is likely to benefit around 5 crore account holders. 

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The charges at semi-urban and rural centres range from Rs. 20 to Rs. 40 and at urban and metro centres from Rs. 30 to Rs. 50, SBI further said. The revised monthly balance requirement and charges will be applicable from October. 

Apart from Jan Dhan or PMJDY accounts and Basic Savings Bank Deposits Accounts (BSBD), SBI has now decided to exempt the pensioners, beneficiaries of social benefits from the government and accounts of minors. Out of SBI's 42 crore Savings Bank accounts, 13 crore accounts under PMJDY/BSBD are already exempted from maintaining the monthly balance. 

The following categories of savings bank accounts are excluded from the monthly balance requirement: 
  • Financial Inclusion Accounts 
  • Basic Savings Bank Deposit Accounts 
  • Small Accounts 
  • Pehla Kadam and Pehli Udaan accounts. 
  • Minors up to the age group of 18 (Primary Account Holder) 
  • Pensioners, all categories, including recipients of social welfare benefits 
With more than 2.73 lakh employees, the country's largest lender caters to a customer base of more than 42 crore customers. 

Here are five things that you must know about this move by SBI: 

1.For non-maintenance of the minimum average balance in metro and urban centres, the charges have been revised downward ranging from 20 per cent to 50 per cent across all population groups and categories, the bank said in a release. The charges at semi-urban and rural centres range from Rs. 20 to Rs. 40 and at urban and metro centres from Rs. 30 to Rs. 50. 

2. The revised minimum average balance requirement and charges will be applicable from October 2017, said an official release. 

3. The bank also clarified that customers always have the option of converting the regular savings bank account to basic savings bank deposits accounts free of charge, in case he desires to avail the basic savings bank facilities without being subject to maintain a minimum average balance requirement. 

4. The following categories of savings bank accounts are excluded from minimum average balance requirement: financial inclusion accounts, basic savings bank deposit accounts, small accounts, Pehla Kadam and Pehli Udaan accounts, minors up to the age group of 18 (Primary Account Holder), and pensioners, all categories, including recipients of social welfare benefits. 

5. The bank has 42 crore savings bank accounts out of which 13 crore accounts under the Pradhan Mantri Jan-Dhan Yojana and the basic savings bank deposits accounts were already exempt from this requirement.

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