Monday, May 28, 2012

SBI no Monthly Minimum Balance in Saving Account ? ICICI,HDFC,AXIX maintain it Monthly Basis ?


on Monday, May 28, 2012

It happens only in India.State bank of India recently announced that no monthly minimum balance to be maintained in savings bank accounts in their branched even on quarterly basis .Further SBI Bank has directed its Branches to return (refund)charges debited in customer's account due to non maintenance of Average quarterly Balance (AQB) by customers in quarter ended on 31.03.2012.

On the reverse ICICI Bank, HDFC Bank, Axis Bank has instructed his customer to maintain average minimum balance on Monthly basis instead of Quarterly Basis.Means Now you have to pay charges if you have failed to maintain average monthly minimum balance. As per earlier instructions if customer maintain average quarterly balance more than the limit prescribed then no charges is to debited.



Detail of SBI Minimum Balance

The State Bank of India has asked its branches to remove the minimum balance stipulation and refund charges that were collected for failure to maintain the same.The circular issued on April 25 said the bank has decided to waive the requirement of maintenance of minimum balance for all types of savings bank accounts with immediate effect.

Accordingly, no minimum balance charges would be levied every quarter henceforth, the circular addressed to chief general managers of all SBI circles said.

Branches were advised to use approved publicity material to the effect and to have them displayed prominently on branch premises. In a preceding circular sent only the day before, the bank ordered refund of charges for non-maintenance of minimum balance ‘of personal segment' customers.

This was aimed at setting right an earlier order that sought to apply charges for non-maintenance of minimum balances on all eligible accounts for the quarter ended March 31, 2012.

REFUND ORDERED
The circular said that “the competent authority has since approved refund of minimum balance charges recovered, if any, in respect of non-maintenance of minimum balance for the quarter.” A senior official of SBI said, “We are doing this to help improve our customer base. It has been in the offing for some time.”

Banks, including SBI, fixed a higher minimum savings balance for customers in order to help compensate for services they provided. The waiver of minimum balance therefore represents a major departure from the bank's policy. The official did not elaborate on why the change was done.

Detail of ICICI BANK, HDFC Bank , Axis Bank

The top three private sector banks have tightened their minimum savings bank deposit balance norm.

Against the normal practice of maintaining minimum average quarterly balance, these banks want customers to maintain minimum balance on a monthly basis. What this means is that customers will have to keep higher balances.

The move to get customers to maintain minimum balance on a monthly basis follows the Reserve Bank of India deregulating the savings bank deposit rate in October 2011. The RBI has not stipulated any minimum balance to be maintained in savings accounts to any bank. The RBI guidelines only state that account holders should get from their banks a month's notice on any change in the minimum balance norm.

ICICI Bank's minimum monthly balance requirement is Rs 10,000 at metro and urban locations; Rs 5,000 at semi-urban branches; and Rs 2,000 in rural areas.

Similarly, the minimum monthly balance requirement at metro and urban areas is Rs 10,000 for Axis Bank and HDFC Bank. In the case of semi-urban areas, the minimum balance requirement is Rs 5,000 for the two banks. In rural areas, the minimum balance requirement is Rs 5,000 in the case of HDFC Bank and Rs 2,500 in the case of Axis Bank.


Average Minimum Balance required

Sr No
Bank
Metro
Urban area
Rural areas
1
ICICI BANK
10000
5000
2000
2
HDFC BANK
10000
5000
5000
3
AXIS BANK
10000
5000
2500

These private sector lenders have also tweaked the penalty charge for non-maintenance of minimum monthly balance. Charges for HDFC Bank and ICICI Bank range between Rs 250 and Rs 350; while, those of Axis Bank are Rs 750 (metro and semi-urban) and Rs 500 (rural).

According to Ms Chitra Pandeya, Senior President, YES Bank, the lenders are targeting good quality customers through the move. When minimum balance has to be maintained on a monthly basis, customers will keep enough funds in their accounts to ensure that they do not have to pay non-maintenance charges.

Analysts say the switch to monthly maintenance of balance is a positive for banks' margins. “This will generate higher float money via the saving account balances,” a banking analyst said.

The largest PSU lender, State Bank of India, which had imposed charges for non-maintenance of minimum balance a few months ago, rolled back the move

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  1. iTS VERRY NICE AND WRIGHT INFORMATION I HAVE RECEIVED MINIMUM BALANCE CHARGES AGAIN IN MY SBI ACCOUNT
    VERY GOOD WE LOVE SBI

    ReplyDelete
  2. Good to know these info. regard SBI minimum balance.Thank u.

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  3. we love sbi bank ,because no minimum balance service

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  4. SBI is the best bank all over the world.Now it doesnot charge minimum balance charges even if your account balance remains zero for years.

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  5. SBI was the best bank and is the best bank now. HDFC Bank, ICICI Bank and Axis Bank are being run by a group of looters. Their minimum balance charges are like blood sucking worms. I have closed all my family accounts with them and opend with SBI. RBI should take stern action against all these bloodsuckers. Is it possible in a country like India where people are struggling to meet daily expenses, can keep big amounts in saving account. These bank should not be allowed to open branches other than in metro cities.

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  6. It is no doubt a good move from view point of account holders. But we should appreciate that Bank incurs some amount of expenditure to maintain savings accounts. How does the Bank meet the cost?. The Bank might have felt that such move would attract more number of savings accounts. I wonder whether marginal increase in number of savings accounts and resultant volume of low cost funds will be so high as to meet the cost involved for maintaining all existing and new savings accounts.

    On the part of ICICI Bank, the recent change from AQB to AMB is very unkind to customers (P.S: I have no knowledge of practice in HDFC and Axis Bank)

    ReplyDelete
    Replies
    1. I hope you agree, that the cost for maintaining the savings accounts are very negligible. Secondly, Do you know the profits the bank earns on all their other products. Namely the credit cards and investment products. If they can maintain accounts for every credit card, which is free of cost. Then they can very well maintain for all savings account.

      As rightly mentioned, one should never go to private banks for services. Instead patronise with the national and semi-national banks, as their services are any time better.

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  7. Axis had charged me -1250 in 4 months, since the account is no longer salary account..

    Banks are eating money...

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  8. I love SBI Bank very much.......Really it is a helpful friend for everyone...Jnanaranjan

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  9. Hdfc charged me more than 3000 bloodsuckers looters, i hate them..

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  10. Good decision by SBI...it is the best bank that atleast thinks about it's customers of Savings accounts..

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