SBI waives minimum balance charges: SBI also waived SMS charges levied on a quarterly basis. However Currently, SBI savings bank customers need to maintain an average monthly balance of ₹3,000 in metros. 

The State Bank of India (SBI) announced on March 11, 2020, that it has waived off the requirement of holding the average monthly balance for savings accounts. “State Bank of India has decided to waive maintenance of Average Monthly Balance (AMB) for all Savings Bank Accounts,” the bank’s press release stated. it will waive charges for non-maintenance of average monthly balance (AMB) for all 44.51 crore savings bank accounts. Currently, SBI savings bank customers need to maintain an average monthly balance of ₹3000, ₹2000 and ₹1000 in metro, semi-urban and rural areas respectively. Bank used to levy a penalty of ₹5 to ₹15 plus taxes on non-maintenance of average monthly balance. 

From now on all SBI customers will enjoy the zero balance facility in their savings bank accounts. This, according to the press release, will benefit 44.51 crore savings bank account holders.

SBI has also waived of SMS charges. India’s biggest bank has also rationalized interest rates on the savings bank account to a flat 3% per annum for all buckets. Currently, the interest rate on SBI saving accounts is 3.25% for deposits up to ₹1 lakh, and 3% for deposits above ₹1 lakh. 

“This announcement will bring in more smiles and delight to our valuable customers. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI,” chairman Rajnish Kumar said in a statement.

SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It is also the largest mortgage lender in the country. As of December 31, 2019, the bank has a deposit base of over Rs. 31 lakh crore with 21,959 branches in India.

Earlier in the day, SBI had announced a cut in its MCLR or marginal cost of fund-based lending rate by up to 15 basis points across various tenors effective March 10, a move which will make home and auto loans cheaper. SBI has reduced its one-year MCLR by 10 basis points to 7.75%, from 7.85% earlier. This is the 10th consecutive cut in MCLR by the bank in the current fiscal.

SBI also today cut interest rates on fixed deposits or FDs for the second time in a month. The revised rates came into effect from 10th March. (Check latest SBI FD rates)