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SBI Charges for Minimum Shortfall from 1st April 2017

SBI Charges for Minimum Shortfall from 1st April 2017 :- New Delhi: On Saturday, the State Bank of India(SBI) released an announcement that if account holders do not maintain minimum account balance, the bank will penalise them. The SBI made this new announcement on Friday and the changes will be effective from April 1, 2017.

The last announcement by few banking institutions have started charging transaction fee post four free transactions in a calendar month through ATMs.

SBI has made a list of the charges effective from 1st April 2017, on its official website. Here we provide some information regarding the announcement of SBI below:

  • In Metros – the minimum balance for any bank account will be Rs. 5000.
  • For semi-urban – the minimum balance will be Rs. 3000.
  • For urban area – it would be Rs. 2,000.
  • For rural area – the minimum account balance would be Rs. 1000.

The charges are based on the difference from the required minimum balance and the shortfall. For example, in case the balance in a metro is 25% of the minimum, charges applicable will be Rs. 100 in addition to service tax.

As per the latest notification of the bank with regards to new charges:
  • If the deficit is 50%- 75% a charge Rs. 75 is applicable in addition to service tax.
  • In case the shortfall is less than 50% the charge of Rs. 50 and service tax is applicable.
  • In rural areas – penalties range from Rs. 20 to Rs. 50 excluding service taxes.
  • If customers carry out over three transactions at a bank in a month there will be a charge of Rs. 50. But this charge is already applicable.

An official of SBI said that the cash transactions already exist at branches. It is only a renewal that is starting from the next financial year 1st April 2017.