(PTI)
The State Bank of India (SBI) has decided to increase – by several times – the minimum balance required to maintain a savings account.The monthly average balance (MAB) requirement has been increased to as high as Rs 5,000 for branches in six metros. The minimum balance is expected to be raised from April 1. The move will hit 31 crore depositors, including pensioners and students.The benchmark for MAB and the penalties for not maintaining it are likely to be followed by other public sector banks.
In the meanwhile, the government has asked SBI to reconsider it’s decision to raise the MAB, sources told PTI.Savings bank account holders of SBI and its five associate banks (that are scheduled to merge with it April 1) will have to maintain this monthly balance or they will invite a penalty ranging from Rs 20 (rural branches) to Rs 100 (metro cities).
