The Average Minimum Balance (AMB) is the minimum amount that must be maintained in your savings account to avoid being charged for non-maintenance.
SBI zero balance account: State Bank of India (SBI), the country's largest lender offers a range of savings accounts to retail customers. While SBI has set certain rules for its regular savings accounts - wherein the account holder is required to maintain an average monthly balance to the tune of Rs. 1,000-3,000 in the account.
India's one of the largest public sector bank, Punjab National Bank (PNB) has collected Rs 278.66 crore from the poor account holders as a penalty in the financial year 2018-19 for not maintaining the minimum balance. According to PNB data, the penalty amount of Rs 278.66 crore is 32 per cent more than the amount recovered in the last financial year (2017-18).
India's largest lender State Bank of India, which suffered a staggering net loss of Rs 6,547 crore during 2017-18, led the pack in penalising its customers for not maintaining minimum account balance.
The State Bank has 41 crore savings bank accounts. Of that, 16 crore are under the Pradhan Mantri Jan Dhan Yojana/basic savings bank deposit.
The minimum balance limit for SBI customers is Rs 3,000 for metro and urban centres, Rs 2,000 for semi-urban areas and Rs 1,000, while certain groups exempted from the restrictions of maintaining a minimum balance.
The SBI today said it has lowered minimum balance requirement for savings accounts in metros to Rs 3,000 from the current Rs 5,000 while exempting pensioners and minors to maintain the minimum average balance.
SBI will impose a penalty on non-maintenance of minimum balance in accounts besides effecting a revision in charges on other services.
Mumbai: The Reserve Bank today asked banks not to levy penalties on customers who don't maintain a minimum balance in any inoperative account as part of a consumer protection initiative.“It is advised that henceforth banks
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