India’s largest bank SBI announced yesterday on its Twitter channel that it will be waived – off charges for non-maintenance of average monthly balance (AMB) for all savings bank accounts. Currently, SBI bank customers need to maintain an average monthly balance of Rs. 3000, Rs. 2000 and Rs. 1000 in metro, semi-urban and rural areas respectively. Bank used to charge a penalty of Rs. 5 to Rs. 15 plus GST taxes on non-maintenance of average monthly balance in saving bank accounts.

SBI Bank has waive-off quarterly SMS charges for all saving bank accounts. India’s largest bank has also reduced interest rates on all accounts to 3% per annum. Currently, the interest rate on all SBI saving accounts is 3.25% for deposits up to Rs. 1 lakh and 3% for deposits above Rs. 1 lakh.

“This announcement will bring in more smiles and delight to our valuable customers. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI” Chairman Rajnish Kumar said in a statement.

“The decision by @TheOfficialSBI to remove minimum balance requirement in its savings accounts will immensely help middle class and poor and improve ease of living” this statement finance minister Nirmala Sitharaman gives in a tweet on her official twitter channel.

SBI Bank is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It has also the largest mortgage lender in the country. As on 31 December 2019, the bank has a deposit base of over Rupees 31 lakh crore within 21, 959 branches in India.