No Minimum Balance

No Minimum Balance Required for SBI Savings Accounts

Congrats to State Bank of India for removing the stipulation of maintaining a minimum Average Quarterly Balance (AQB) for all Personal Segment Savings Bank Account holders across all SBI branches. Thus there will be no Service Charge for Non Maintenance of minimum balance stipulations (AQB) in SB account of Personal Segment customers. It’s a major step forward towards Customer retention and acquisition.

Further, while opening a Savings Bank Account minimum amount to be deposited has also been reduced to Rs 100/- , except in case of 'No Frills Account', where the minimum deposit is Rs.50/-.

According to the official sources the circular issued on April 25, the bank has decided to waive the requirement of maintenance of minimum balance for all types of savings bank accounts with immediate effect. Branches were advised to use approved publicity material to the effect and to have them displayed prominently on branch premises. In a preceding circular sent, the bank ordered refund of charges for non-maintenance of minimum balance ‘of personal segment' customers.

The Reserve Bank of India has not stipulated any minimum balance to be maintained in savings accounts to any bank. The RBI guidelines only state that account holders should get from their banks a month's notice on any change in the minimum balance norm.

The private Bank sectors like HDFC & ICICI Bank's minimum monthly balance requirement is Rs 10,000 at metro and urban locations; Rs 5,000 at semi-urban branches; and Rs 2,000 in rural areas. These private sector lenders have also tweaked the penalty charge for non-maintenance of minimum monthly balance. Charges for HDFC Bank and ICICI Bank range between Rs 250 and Rs 350; while, those of Axis Bank are Rs 750 (metro and semi-urban) and Rs 500 (rural).

Hope very soon the Private Banks will follow SBI’s no minimum balance deposit for maintaining the SB Accounts.