Published On : Mon, Mar 6th, 2017

Reconsider penalty for not keeping minimum balance: Govt to SBI


New Delhi: The government today asked SBI to reconsider its decision to levy penalty on non-maintenance of minimum balance, which the bank plans to hike manifold from April 1 impacting over 31 crore savings bank account holders.

State Bank of India, according to a source, has also been asked to reconsider charges it proposes to levy on cash transactions and ATM withdrawals over specified limits.

The country’s largest lender has announced imposing penalty ranging from Rs 20-100 on non-maintenance of Minimum Average Balance in savings bank accounts from April 1. The penalty is as high as Rs 500 in case of current accounts.

The bank has also increased the minimum balance requirement by many times, which is as high as Rs 5,000 for account maintained with branches in six metro cities.

SBI has also imposed restrictions on withdrawals of cash from its branches as well as ATMs. These will attract charges after certain specified limits.

“Government has asked SBI to reconsider it’s decision to impose a penalty on non- maintenance of minimum balance in accounts from April 1 onwards,” the source said.

The government has also urged SBI and other lenders, including private sector banks to “reconsider the charges on cash transactions and ATM withdrawals above a certain limit”.