The State Bank of India (SBI) has announced that it will be increasing the charges for not maintaining the average monthly balance in savings accounts. From June 1, 2025, customers who fail to maintain the required average monthly balance will be charged 6% of the shortfall. This move is expected to impact a large number of account holders, particularly those with low-balance accounts.
Currently, SBI charges a penalty ranging from ₹5 to ₹15, plus GST, for non-maintenance of the average monthly balance, depending on the type of account and the location of the branch. However, with the new charges, customers will be required to pay 6% of the shortfall amount, which could be significantly higher than the existing penalties.
The average monthly balance requirements vary across different types of SBI savings accounts. For example, customers with regular savings accounts are required to maintain an average monthly balance of ₹1,000 to ₹3,000, depending on the location of the branch. For urban areas, the requirement is ₹3,000, while for rural areas it is ₹1,000.
The bank has stated that the increased charges are aimed at discouraging customers from maintaining low-balance accounts and to encourage them to keep a minimum balance in their accounts. The move is also expected to help the bank to improve its profitability and reduce the costs associated with maintaining low-balance accounts.
It is worth noting that SBI is not the only bank to charge for non-maintenance of average monthly balance. Many other banks, including private sector lenders, also levy similar charges on their customers. However, the 6% charge announced by SBI is among the highest in the industry.
Customers who are likely to be impacted by the new charges are advised to review their account balances and ensure that they maintain the required average monthly balance to avoid the penalties. They can also consider converting their accounts to basic savings bank deposit accounts, which do not require maintenance of a minimum balance. Overall, the increased charges are likely to have a significant impact on SBI’s customers, and it remains to be seen how they will respond to the new charges.