The State Bank of India (SBI) has announced a waiver of account closing charges for savings accounts that are at least a year old according to a Business Today (BT) news report. This announcement comes only a few days after India’s largest public sector bank announced a revision of the minimum balance requirements for savings account holders in metro cities. The new charges have come into effect from the 1st of October 2017 according to the report.
Prior to announcement of this waiver, SBI was charging a closure charge of Rs. 500 plus GST (at 18% as per the financial services rate) to its savings account holders. The Business Today report also states that this closure charge is also waived in case the account holder closes his/her account within 14 days of opening it. For those who decide to close their account within the 14 day to 1 year period, the bank will continue to levy the account closure charge of Rs. 500 plus 18% GST.
The BT report also mentioned that in its prior announcement, SBI has decreased the MAB (monthly average balance) requirement for metro city customers to Rs. 3000 from the earlier level of Rs. 5000. Additionally, the fines applicable to accounts not maintaining this MAB have also been revised in SBI’s earlier announcement. Accounts that are exempt from these MAB requirements as per the BT report include all pensioner accounts, all minor-held accounts till they turn 18, Pehli Udaan and Pehla Kadam accounts, small accounts, basic savings bank deposit accounts and financial inclusion accounts.