SBI clarifies on closure of 41 lakh saving accounts for not keeping minimum balance

New Delhi: In a widely publicised report in certain news dailies about the State Bank of India (SBI) reducing minimum balance charges, it was also reported that after introduction of the requirement of average monthly balance (AMB), SBI closed 41.16 lac accounts. The bank on Thursday clarified that these accounts have not been closed Suo-Motu.

“SBI has 41 crore savings bank accounts. During the current financial year, 2.10 crore savings bank accounts have been opened, of which 1.10 crore accounts are Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts which are exempt from average monthly balance requirement,” the bank said.

On account of the merger of SBI’s associate banks with SBI in April 2017, where the customers were having multiple accounts with different associate banks and SBI, the number of accounts closed during the year is relatively high.

Customers who are not able to maintain average monthly balance have the option to get their regular savings bank accounts converted to SBI Basic Savings Bank Deposit (BSBD) accounts free of charge.

“Effective from April 1 2018, the service charges for non-maintenance of average monthly balance have been reduced by 75 percent which has been very well appreciated by customers of the bank,” SBI concluded.

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