SBI to Reduce Fines on the savings account

‎The bank had faced a lot of flak after it came to light that it earned more from minimum balance penalties than its profits (which were contained because of bad loan provisions).

The SBI Bank has issued a notification on April 1, reducing the penalty on a savings account.

SBI has reviewed its minimum balance requirement following a finance ministry report which showed that SBI collected Rs 1,771 crore during April-November 2017 as a penalty from customers for non-maintenance of monthly average balance in savings accounts. From April 2018 onward, charges for non-maintenance of AMB for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month plus GST to Rs 15 per month.

For rural and semi-urban centres, the charges have been brought down to Rs 10 and Rs 12 per month plus GST respectively from Rs 40 per month plus GST.

SBI's managing director, retail and digital banking, P K Gupta said, the charges have been reduced taking into account the feedback and sentiments of bank's customers. In the big cities, account holders have to keep at least 5,000 rupees, account holders in urban areas, 3,000 rupees, account holders in small towns and Rs. 1,000 in rural areas to keep a minimum amount of 1,000 rupees.

Albert Adomah sparks Aston Villa to impressive derby win over Wolves

The above revision will benefit 25 crore bank customers.

The move will eat into the fee income of the bank, which had reported the first quarterly loss in 20 years, as it had to make huge provisions for bad loans. The bank rejects Jan Dhan accounts, essential funds bank stores (BSBD) accounts, retired people, recipients of social advantages from the legislature and records of minors from the MAB necessity. Both these accounts do not have minimum balance requirements.

However, it needs to be noted that, the customer can not have any other Savings Bank Account, if he/she has a BSBD Account. Besides, it has unveiled a Rs 2.11 lakh crore recapitalisation plan.

SBI claims the reduction is expected to benefit 250 million customers. "Somewhere the bank also needs to recover its cost", he had said. "But it can't work this way that everything comes free", Kumar said.

Related News:

13 March 2018

Iran's light crude oil price up 79 cents in a week
Last week's U.S.jobs data, as well as an easing of fears of a global trade war, boosted stocks across many parts of the world. Energy Information Administration said output from the shale basin would hit a new record high in April.

13 March 2018

ASUS ZenFone 5 Max specs revealed on Geekbench
That said, speaking about battery capacity, we can very well expect the ZenFone 5 Max to pack in a battery larger than 4000 mAh. The ZenFone 5 Max also made a score of 1518 and 5386 points in Geekbench's single and multi-core tests respectively.

13 March 2018

Mourinho: Anything is possible if United reach Champions League quarters
Pogba was a notable omission during the Red Devils 2-1 victory over fierce-rivals Liverpool in the North West Derby on Saturday. Asked if United have the potential to go all the way this season, Mourinho was cautious.
13 March 2018

Verizon LG V30 Android 8.0 Oreo Update Released
There's no follow-up model yet as it is too early but good news, the Xperia R1 and R1 Plus are getting the Android Oreo update. Unfortunately, the update only includes the January security patch and not the latest one from March or even February.

13 March 2018

CM Punk Seemingly Confirms He's Fighting At UFC 225 In Chicago
Punk landed all six of his shots in the clinch, but Gall threw sharp elbows early in the first round that opened up his opponent. The UFC 225 pay-per-view event is scheduled to go down on Saturday, June 9, 2018, at the United Center in Chicago, Illinois.

13 March 2018

Nun involved in Katy Perry convent lawsuit collapses, dies in court
The 89 year old Sister Catherine Rose Holzman was at the Los Angeles county court for the latest hearing in the case. Hollister was told to shell out $15 million in damages. "And to Katy Perry , please stop".
13 March 2018

Korea's Spy Chief Meets Japanese Foreign Minister to Brief on N. Korea
It would be reasonable to hold a summit meeting after North Korea takes concrete steps toward abandoning its missile and nuclear programs.

13 March 2018

Boothbay Fund Management LLC Stake In Time Warner INC (TWX) Was Increased
The current share price indicates that stock is -13.23% away from its one year high and is moving 13.82% ahead of its 52-week low. Stock has got OUTPERFORM rating from 4 analyst (s) whereas last month 4 analyst (s) have given outperform rating.

13 March 2018

Kagiso Rabada given two-match ban after Steve Smith collision
Though Rabada was speaking before he had received any official confirmation of a sanction, he appeared resigned to his fate. George's Park on Sunday and now will wait for the match officials and the International Cricket Council to decide his fate.
13 March 2018

Manchester United vs Sevilla Live Score Stream Commentary in Champions League 2018
The Spanish side had the better of the first leg, but a combination of De Gea's saves and poor finishing left them frustrated. He gives everything, he has done it for so many years now, we know exactly what he brings and he will have a great time here.

13 March 2018

Frida Kahlo: Row erupts over Barbie doll based on artist
The Frida Kahlo Barbie is now available for pre-order on the Barbie website for $29.99, missing unibrow and all. Hayek was not the only one who raised her concern about Kahlo's image being used by a big corporate house.

13 March 2018

Southampton sack manager Pellegrino
Pellegrino, only appointed in the summer, paid the price for Southampton's alarming recent form. So they hired Pellegrino, and nine months on they must be regretting their decision.