Two major decisions of SBI, zero balance facility and reduced interest rate on savings accounts
State Bank of India has taken two major decisions on Thursday to its 44.51 crore savings account holders. In the first decision, SBI has given zero balance facility on savings account, while in the second decision, it has reduced the interest rate on savings accounts.
Under the decision taken by SBI on Wednesday, it has abolished the requirement of maintaining minimum balance in savings accounts. In such a situation, there will be no charge if there is no money in the account of the customers. Whereas, in the second decision, the bank has reduced the interest rate on savings accounts so far to 3.25 per cent, to a flat 3 per cent.
Consider the first decision like this: Zero balance is over
The State Bank of India on Wednesday decided to end the mandatory monthly minimum amount in savings account. With this, all the savings account holders of the bank will start getting zero balance facility. SBI issued a statement saying that in order to further the financial inclusion in the country, it has abolished the mandatory monthly minimum amount (AMB).
Explain that currently the savings account holders in metro cities have to keep Rs 3000 as the minimum amount, Rs 2000 in towns and Rs 1000 in rural areas. Till now, the customers had to pay fines and taxes ranging from five to 15 rupees for not meeting the minimum amount. In this regard, the chairman of the bank, Rajnish Kumar said that this decision will bring a smile on the face of more people.
Think of the second decision like this: reduce the interest rate on savings account
SBI in its second decision has reduced the interest rate on savings accounts. Till now savings account holders used to get annual interest at the rate of 3.25 per cent according to the amount deposited in the account. But after the new decision this rate has been reduced to flat i.e. 3% uniformly. Along with this, cuts in fixed deposits (fixed deposits or FDs) and marginal cost based interest rates (MCLR) of the fund have also been announced.
Bank took another decision
SBI has taken another decision apart from both the above decisions. Under this, his customers will no longer have to pay the fee for SMS service on quarterly basis. It has also been abolished.