State Bank of India has cut penalty charges for non-maintenance of average monthly balance (AMB) by up to 75 per cent. The new rates will come into effect on April 1, 2018, according to an official statement of SBI.
The charges for non-maintenance of AMB for customers in Metro and Urban centres have been reduced from a maximum of Rs 50 per month to Rs 15 per month. Similarly for Semi-Urban and Rural centres, the charges have been reduced from Rs 40 every month to Rs 12 and Rs 10 GST charges will be applicable over and above the rates specified above.
This decision follows severe criticism that the bank earned hefty income of Rs 1,771 crore in just eight months from depositors who failed to maintain balance in their bank accounts. The amount was more than SBI’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit April-September.