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SBI, Bank of Baroda savings accounts: minimum balance rules, penalty explained - GST Station

SBI, Bank of Baroda savings accounts: minimum balance rules, penalty explained

SBI, Bank of Baroda savings accounts: minimum balance rules, penalty explained

    NEW DELHI: Regular savings accounts require customers to maintain a minimum average balance (MAB). Generally, banks charge a penalty on non-maintenance of MAB in your saving accounts. The MAB amount and the penalty differ across banks, and also depends on the type of bank account you have. State Bank of India (SBI), Bank of Baroda (BoB) and other leading banks have fixed their monthly minimum average balance requirements according to the location of a customer’s account. Banks also charge a penalty from customers who fail to maintain an average monthly balance in their savings account. The penalty varies on factors such as the location of a branch. The MAB is calculated by taking into account the balance maintained in an account on all days of the month.

    Here are the MAB requirements and penalty charges levied for non-maintenance of balance by SBI, and Bank of Baroda (BoB):

    State Bank of India: Customers having a regular savings bank account in SBI branches located in metro and urban areas are required to maintain a minimum average balance of ₹3,000, in semi-urban branches ₹2,000, and in rural branches ₹1,000, according to the bank’s website. Like other banks, SBI imposes penalties on non-maintenance of MAB in most savings accounts.

    Currently, SBI imposes a charge of ₹10- ₹15, besides GST, on accounts in metro and urban branches if MAB is not maintained. These charges very between ₹7.50 and ₹12 in semi-urban branches while for rural branches the charges are between ₹5 and ₹10, plus GST. The amount of penalty is decided on the amount that falls short of MAB requirements for the particular category of account.

    Bank of Baroda: Bank of Baroda (BoB), which has become the second largest public sector bank after SBI after its amalgamation with Bengaluru-based Vijaya Bank and Mumbai-based Dena Bank, has increased the minimum quarterly average balance requirements in its advantage savings account with effect from 1 February 2019.

    The minimum quarterly average balance for BoB advantage savings accounts for urban and metro branches is ₹2,000 and for semi-urban branches, ₹1,000.

    If a customer fails to maintain this in BoB advantage savings account, then the individual will be fined according to the prescribed slabs by the bank. The maximum charges for non-maintenance of minimum balance are ₹200 for metro and urban branches and ₹100 for semi-urban branches, according to a press release by the bank.

    The Jan Dhan Yojana accounts and Basic Savings Bank Deposit Accounts are exempt from minimum balance requirements. Many banks also exempt salary accounts from this requirement.

    Source- Livemint.