India’s largest lender State bank of India (SBI) on Wednesday waived the requirement for maintaining minimum balance in a savings bank account.
The bank also rationalised interest rate on all savings bank accounts to a flat 3 per cent, a move affecting 44.51 crore account holders.
“The charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts,” an official statement read.
“Bank has also rationalised interest rate on a savings bank account to a flat 3 per cent p.a. for all buckets,” it added.
Currently, customers need to maintain AMB of Rs 3,000, 2,000 and 1,000 in the metro, semi-urban and rural areas, respectively.
Furthermore, the bank used to levy a penalty of Rs 5 to Rs 15 plus taxes on non-maintenance of AMB.
The interest rate on savings accounts is 3.25 per cent for deposits up to Rs 1 lakh in a savings account, and 3 per cent for deposits above Rs 1 lakh.
SBI further said that it has also waved off the SMS charges, keeping in the mind the ‘Customer First’ approach.
Earlier in the day, SBI also announced a reduction in its marginal cost of funds-based lending rate (MCLR) by 10 to 15 base points, across all tenors.
The one-year MCLR comes down from 7.85 per cent per annum to 7.85 per cent with immediate effect from March 10. This is the 10th consecutive cut in MCLR during FY 2019-20.
As a result, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs 7 per one lakh on a 30-year loan. EMIs on car loans will also be reduced by Rs 5 per one lakh on a 7-year loan.