SBI or State Bank of India does not require its customers to maintain a minimum required balance in select types of accounts. SBI, which requires its savings account holders to meet its Minimum Average Balance or MAB rules depending on type of branch, offers a special type of savings bank account – called Basic Savings Bank Account. SBI Basic Savings Bank Account is excluded from MAB requirement, according to the bank’s website – sbi.co.in. Besides the basic savings bank deposit account, some other categories of Savings Bank Accounts that are excluded from the monthly average balance requirement include Financial Inclusion Accounts, No frill Accounts, Salary Package Accounts and Small Accounts, it noted.
SBI’s Basic Savings Bank Account: Here are 10 things to know
1. Who can open a Basic Savings Bank Account at SBI: Being a type of savings bank account, eligibility criteria applicable to regular savings bank account is applicable to Basic Savings Bank Account. This account can be opened by any individual provided he/she has valid KYC documents, says SBI on its website. “Primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees,” SBI adds.
2. Condition: Currently, SBI does not allow its customer holding a Basic Savings Bank Account to keep any other savings bank account. “If the customer already has a Savings Bank Account, the same will have to be closed within 30 days of opening a Basic Savings Bank Deposit Account,” SBI explains on its website.
3. The Basic Savings Bank Account is KYC-compliant (Know Your Customer), and can be operated singly, jointly or with either or survivor, former or survivor, anyone or survivor facilities, according to the SBI website.
4. Minimum/maximum balance: No minimum or maximum balance limits apply to SBI’s Basic Savings Bank Account.
5. Rate of interest: Interest rates offered in regular savings bank accounts are applicable to the Basic Savings Bank Account, according to SBI. Effective July 31, 2017, SBI offers an interest rate of 3.5 per cent per annum on savings bank deposits up to Rs 1 crore, according to the SBI website. On savings deposits balances above Rs 1 crore, an interest rate of 4 per cent per annum is applicable, it noted.
6. How to operate: The Basic Savings Bank Account comes with a Basic RuPayATM-cum-debit card issued free of cost and without any annual maintenance charge, according to the SBI website. Customers can also withdraw money at branches using a withdrawal form.
7. SBI allows a maximum of four withdrawals a month from the Basic Savings Bank Account, according to the SBI website.
8. These include ATM withdrawals – at ATMs of SBI or other banks – and transactions “through other modes including RTGS (Real-Time Gross Settlement)/NEFT (National Electronic Funds Transfer)/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc.”
9. “No further customer debits would be allowed during the month,” SBI adds on its website. That means an individual holding a Basic Savings Bank Account won’t be able to withdraw money from the account in a month after exhausting the monthly upper limit of four withdrawals.
10. Other free services: SBI provides many services free of cost in this type of account. These include receipt or credit of money through electronic payment channels such as NEFT and RTGS and deposit or collection of cheques drawn by central or state governments. Also, a Basic Savings Bank Account attracts no charge on activation of inoperative accounts or closure of account, according to the SBI website.