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4.2mn SBI accounts closed for not keeping minimum balance: RTI

14 Mar 2018 | By Anjana Raghav
SBI closes 4.2 million savings bank accounts

The SBI has closed 41.16 lakh savings bank accounts between April 2017 and January 2018 for not maintaining the minimum monthly balance, revealed an RTI query.

The nation's largest lender had re-introduced the charges for non-maintenance of average monthly balance in April last year after a gap of five years.

The bank later revised the charges for not maintaining the minimum balance in October.

In context: SBI closes 4.2 million savings bank accounts

14 Mar 20184.2mn SBI accounts closed for not keeping minimum balance: RTI

ReductionBank decreased 75% penalty for non-maintenance of monthly balance

SBI recently cut 75% penalty for non-maintenance of monthly average balance. New charges will be effective 1 April.

Penal charges for non-maintenance of AMB in metros and urban centers were reduced from a maximum of Rs. 50/month plus taxes at 18% to Rs. 15/month and taxes.

For semi-urban and rural centers, charges were reduced from Rs. 40 to Rs. 12 and Rs. 10/month, respectively.

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AccountsSBI has 41 crore savings bank accounts

The SBI has 41cr savings bank accounts. Of that, 16cr are under Pradhan Mantri Jan Dhan Yojna/basic savings bank deposit (BSBD), which are all exempted from the penalty for not maintaining the minimum balance.

Between April and November, the bank had netted a windfall of Rs. 1,771.67cr, more than its second-quarter profit, from customers for non-maintenance of minimum balance, states Finance Ministry data.