Non-Maintenance of Minimum average balance with no penalty -State Bank Of India
SBI reduces penalty for non-maintenance of minimum average balance; here's how to calculate it
Can you remember life before debit cards? Neither can we! Unfortunately, all that swiping makes it easy to breach the minimum average balance requirement that some bank accounts insist on. If fact, banks make a pretty penny from our collective forgetfulness.
Take State Bank of India (SBI) for example. The country's largest lender had reintroduced the monthly average balance (MAB) charges last April after a gap of six years, charging up to Rs 100 as penalty. Over the following eight months, the bank netted nearly Rs 1,772 crore - 12 percent more than its profits for the second quarter of the current fiscal - from customers for non-maintenance of MAB. Other government banks that were already collecting amounts in excess of Rs 50 crore as penalty from customers for falling below their minimum average balance requirements included Punjab National Bank, Canara Bank and IDBI Bank. Meanwhile, private banks like ICICI and HDFC Bank impose a far-steeper fine of up to Rs 600.
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