State Bank of India (SBI), the biggest lender in India, has issued its clarification that 41.16 lakh bank accounts have not been closed by it as was previously reported. SBI has issued its clarification that Suo-moto closure has not taken place for these accounts. There are roughly 41 crore savings accounts with SBI currently and out of these 2.10 crore accounts were set up in the present financial year.
SBI has clarified that out of the current year’s tally, around 1.10 crore accounts come under PMJDY which ensures exemption from the requirement of average monthly balance in the savings account. The bank has also added that with the merger of the associate banks of SBI with the parent bank last year, customers had multiple accounts with various associates and SBI simultaneously. As a result, closing these multiple accounts has created a high tally for the financial year.
SBI has also added that people who are unable to maintain the minimum average balance that is required can opt for conversion of the regular savings bank accounts to BSBD ones which come without any charges. The service charges for not maintaining average monthly balance have been slashed by 75% and this has been lauded by several customers.
The charges for not maintaining the average monthly balance in urban areas and metros is currently Rs. 15 every month plus taxes and has been slashed from Rs. 50 per month and 18% in taxes. For metro and urban clients, the minimum balance should be Rs. 3, 000 each month. For those in rural and semi-urban zones, the charges have been lowered to Rs. 10 and 12 respectively from Rs. 40 previously. The minimum balance requirement is Rs. 2, 000 and Rs. 1, 000 for semi-urban zones and rural centres respectively.