Minimum balance penalty needed to offset Jan Dhan account costs: SBI


SBI recently announced that penalty for non-maintenance of Minimum Average Balance (MAB) from April 1, 2017 as government asked SBI to reconsider charges.

Arundhati Bhattacharya, SBI chief clarify that the condition of maintaining minimum balance will not be applicable to the Jan Dhan accounts. 
The SBI has made it mandatory for savings accounts in metropolitan areas to maintain a minimum balance of Rs 5,000, Rs 3,000 in urban areas, Rs 2,000 in semi-urban areas and Rs 1,000 in rural areas. 
These charges will be based on the difference between the minimum balance required and the shortfall. For metropolitan areas, if the shortfall is greater than 75% then the charges would be Rs 100 plus service tax.
Source- The Indian Express

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