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SBI Prescribes A Minimum Monthly Balance

After HDFC and ICICI started charging for cash transactions beyond the prescribed limit, the State Bank of India (SBI), India's biggest bank will follow suit. These are some of SBI's revised rules.

Bank account holders will have to maintain a monthly average balance (MAB). The MAB values are thus:

  • Rs 5,000 - Metros
  • Rs 3,000 - Urban areas
  • Rs 2,000 - Semi-urban areas
  • Rs 1,000 - Rural areas
Failure to maintain the MAB will attract a penalty of about Rs 100. Savings bank account holders must pay Rs 50 plus service tax after three free transactions. In case of current account, the fee could go as high as Rs 20,000.

The bank will charge Rs 50 after the first three cash deposits of the month. Withdrawal of cash from ATMs will be charged Rs 20 if the number of transactions exceeds three from other banks ATMs; Rs 10 for more than five withdrawals from SBI's ATMs. 

SBi will charge Rs 15 for SMS alerts per quarter from debit card holders. Charges for issue and maintenance of debit cards will also increase. The new charges will go into effect from April 1.