State Bank of India (SBI) is the largest government bank in the country, which provides its services to millions of customers. Recently, an important update has come to light on SBI account holders. According to this update, if a minimum balance is not placed in your account, you may have to pay a fine.
This rule has been implemented especially to customers whose accounts are located in urban, semi-urban and rural areas. In this article, we will give complete information about this update and understand how this rule works.
SBI Minimum Balance Rule Overview
| Type of account | Minimum balance requirement |
| Metropolitan or urban area | ₹ 3,000 |
| Semi-urban area | ₹ 2,000 |
| countryside | ₹ 1,000 |
| Basic Savings Account | Nil |
| Insta plus savings account | Nil |
| Minor Savings Account | Nil |
Why is minimum balance important?
The purpose of keeping minimum balance is to run banking services smoothly and provide better facilities to account holders. If customers do not have the minimum amount fixed in the account, the bank has the right to impose additional fees. This affects not only the usefulness of the account but can also obstruct the transaction.
Need minimum balance in various accounts of SBI
1. Regular Savings Account
- In metros: ₹ 3,000
- In small cities: ₹ 2,000
- In rural areas: ₹ 1,000
2. Basic Savings Bank Deposit Account
- There is no minimum balance in this account.
- This account is suitable for those who come from low income group.
3. Minor Savings Account
- This account created for children also requires no minimum balance.
4. Resident Foreign Currency Domestic Account
- In this account with foreign exchange:
Rule and procedure of fine
If customers do not keep the minimum amount prescribed in their savings account, the following fine may apply:
- In metros: ₹ 10- ₹ 15 per month.
- In small cities and semi-urban areas: ₹ 5- ₹ 10 per month.
- In rural areas: ₹ 2- ₹ 5 per month.
The bank sends notice to customers and informs first. If the balance is not completed within a month, the penalty applies.
Benefits for SBI account holders
1. Zero Balance Accounts
SBI has provided zero balance facility on many types of accounts. These include:
- Basic Savings Bank Deposit Account
- Insta plus savings account
2. Free Debit Card
Customers can get Rupay Basic Debit Card, which does not charge any annual fee.
3. Interest Rates
Interest Rates on SBI Saving Accounts:
- At a balance less than ₹ 10 crore: 2.70% per year.
- ₹ 10 crore or more at balance: 3% per year.
Rules determined by RBI
The Reserve Bank of India (RBI) has given the following instructions to banks:
- To inform customers about minimum balance while opening an account.
- If the balance is reduced then sending notices to customers.
- To limit the amount of fine to a certain percentage so that the account does not go into negative balance.
Does SBI really impose a fine on minimum balance?
Since March 2020, SBI has stopped imposing fine for not keeping minimum balance on most of its savings accounts. The Finance Ministry has confirmed that SBI no longer impose any penalty on regular savings accounts. However, some special types of accounts such as Resident Foreign Currency Domestic Account still requires the minimum amount to be kept.
Disclaimer
The purpose of this article is to give information about the rules and updates issued by SBI. Recently, the Finance Ministry has clarified that SBI has abolished the provision of fine for not keeping minimum balance on its regular savings accounts. Therefore, the news that “not keeping minimum balance will cost heavy fine,” is not completely correct. Customers confirm their account status and new instructions issued by the bank themselves.
