Last week SBI announced some reductions in its minimum balance requirements as well as penalties charged. The new SBI minimum balance rules will be effective from 1st October. SBI has also waived the minimum balance requirement for students and senior citizens.
SBI Minimum Account Balance MAB Rules 2017
The MAB (Monthly Average Balance) requirements are different for different types of branches.
(Some of these have been revised, and some remain the same as before.)
| Type of Branch | Monthly Average Balance Requirement |
| Metro | Rs.3000 |
| Urban | Rs.3000 |
| Semi-Urban | Rs.2000 |
| Rural | Rs.1000 |
Penalty & Charges for non-maintenance of MAB in SBI
The penalties charged for non-maintenance of MAB depends on the actual MAB maintained. SBI has reduced most of the penalty amounts.
| Description of MAB (Monthly Average Balance) | Penalty Charged |
| Metro (MAB requirement – Rs.3000) | |
| MAB is between Rs.2999 and Rs.1500 | Rs.30 + GST |
| MAB is between Rs.1499 and Rs.750 | Rs.40 + GST |
| MAB is below Rs.750 | Rs.50 + GST |
| Urban (MAB requirement – Rs.3000) | |
| MAB is between Rs.2999 and Rs.1500 | Rs.30 + GST |
| MAB is between Rs.1499 and Rs.750 | Rs.40 + GST |
| MAB is below Rs.750 | Rs.50 + GST |
| Semi-Urban (MAB requirement– Rs.2000) | |
| MAB is between Rs.1999 and Rs.1000 | Rs.20 + GST |
| MAB is between Rs.999 and Rs.500 | Rs.30 + GST |
| MAB is below Rs.500 | Rs.40 + GST |
| Rural (MAB requirement – Rs.1000) | |
| MAB is between Rs.999 and Rs.500 | Rs.20 + GST |
| MAB is between Rs.499 and Rs.250 | Rs.30 + GST |
| MAB is below Rs.249 | Rs.40 + GST |
Notes:
- The bank will still charge GST over and above the fine.
- The following accounts are exempt from maintaining MAB –
- Financial inclusion accounts
- Basic savings bank deposit accounts
- Small accounts
- Plela Kadam and Pheli Udaan accounts
- Accounts of minors till the age of 18
- Accounts of all pensioners including recipients of social welfare benefits.
SBI reduced the MAB as well as penalties for some branches because customers were troubled by the recent hike. Hopefully this will offer some respite to the customers.