• By James Kuanal
  • Wed, 11 Mar 2020 08:38 PM (IST)
  • Source:JND
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New Delhi | Jagran Business Desk: India's largest lender State Bank of India (SBI) on Wednesday said that it has decided to waive maintenance of 'Average Monthly Balance' requirements for all saving bank accounts.

As per SBI, the initiative will further boost efforts to promote 'financial inclusion' in the country.

In a statement, it said, "The charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts."

As of now, SBI Savings Bank customers needs to maintain an AMB of Rs 1,000, Rs 2,000 and Rs 3,000 in rural, semi-urban and metro areas, respectively.

"Bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of AMB. Keeping in mind the 'Customers First' approach, the bank has also waived of SMS charges," the statement added.

The move by the bank will bring significant relief to all its customers.

The Bank has also rationalised interest rate on saving bak accounts to flat 3 per cent per year for all buckets.

Also Read: ‘Customers can now pay dues, loans from other bank accounts using IMPS, NEFT’ | Yes Bank

SBI cuts lending rate, auto and home loan

Earlier in the day, SBI announced a reduction in marginal cost of MCLR (Marginal Cost of Fund-Based Lending rate) by 10 to 15 basis points across tenors.

It was 10th consecutive cut in MCLR during FY 2019-20.

One-year MCLR now comes down to 7.75 per cent annum as against 7.85 per cent with effect from march 10.

Similary, car loan EMIs will be slashed by Rs 5 per lakh on 7-year loan. EMIs on eligible home loan accounts will get cheaper by Rs 7 per lakh on a 30-year loan.

Meanwhile, retail term deposits will be reduced by 10 basis points for one year and above tenor and 50 basis points for deposits up to 45 days.

Bulk term deposit interest rates stand reduced by 15 basis points for deposits in 180 days and above tenors. 

SBI is the largest commercial bank in terms of deposits, assets, employees, branches, and customers. It is also the largest mortgage lender in India.  

 

(with agency inputs)