SBI Minimum Balance in Urban, Semi-Urban and Rural Areas

State Bank of India (SBI) is the largest commercial bank in India. SBI is the oldest bank in the Indian subcontinent. SBI has 24,000 domestic branches and 191 international branches spread across 36 countries, and having the largest presence abroad amongst the Indian banks. SBI is headquartered at New Delhi and has 16 regional hubs and 57 zonal offices located at important cities across India.

State Bank of India levies penalties on customers who don’t maintain the prescribed average monthly balance (AMB). However, SBI has several savings accounts that do not require customers maintaining any balance. SBI was heavily criticized for imposing penalties on customers and for charging more than its quarterly profit as penalties, for not maintaining AMB. Penalties applicable for not maintaining AMB depend on the location of your branch and the amount of shortfall.

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SBI Minimum Balance in Urban, Semi-Urban and Rural Areas

Here are key details on SBI minimum balance rules (2018) and its zero balance accounts:

SBI accounts are classified based on the location of the branch and they are: metro, urban, semi-urban and rural. The AMB requirement of SBI savings accounts varies with the type of branch.

Customers having savings accounts in metro and urban branches must maintain an AMB of Rs 3,000. Those having savings accounts in semi-urban and rural branches must maintain an AMB of Rs 2,000 and Rs 1,000 respectively.

SBI branch type	AMB (Rs)
Metro	3,000
Urban	3,000
Semi-Urban	2,000
Rural	1,000

Rules of SBI Minimum Balance:

Metro and Urban Savings Accounts

If your AMB in an SBI metro and urban savings account is less than or equal to 50% of the prescribed AMB, then the penalty levied is Rs 10 + GST (Goods and Services Tax). If the shortfall is in excess of 50% but less than 75% of the prescribed AMB, then the SBI levies a penalty of Rs 12 + GST. If the shortfall is in excess of 75% of AMB, then the penalty levied is Rs 15 + GST.

Semi-Urban Savings Accounts

If the shortfall of AMB in a semi-urban account is less than or equal to 50%, then SBI levies a penalty of Rs 7.50+ GST. If the shortfall is in excess of 50-75% of the prescribed AMB, then the penalty levied is Rs 10 + GST. If the shortfall is more than 75% of the required AMB, then SBI charges a penalty of Rs 12 + GST.  

Rural Savings Accounts

If the shortfall in an SBI rural savings account is less than or equal to 50% of the prescribed AMB, then you are levied with a penalty of Rs 5 + GST. If the short fall is between 50-75%, then SBI levies a penalty of Rs 7.50 + GST. If shortfall is in excess of 75% of the AMB, then penalty levied is Rs 10 + GST.

The table below summarizes the penalty clause of SBI:

Branch type	Shortfall of AMB	Penalty charges (excluding GST) for non-maintenance  AMB (Rs)
Metro & Urban	<=50%	10
	> 50-75%	12
	>75%	15
Semi-Urban	<=50%	7.5
	> 50-75%	10
	>75%	12
Rural	<=50%	5
	> 50-75%	7.5
	>75%	10

There are zero balance SBI savings accounts in which there is no requirement to maintain a particular balance and these are mentioned below: 

• Savings accounts opened for financial inclusion including Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts: The Pradhan Mantri Jan-Dhan Yojana (PMJDY), makes sure of access to various financial services for the weaker sections and low-income groups, as per the SBI website. SBI savings accounts opened under these schemes are exempt from maintaining a minimum balance requirement.
• No frills accounts: Branches are allowed to open accounts for those who are not in a position to submit the requisite documents as prescribed by the bank and intend to maintain balances of less than fifty thousand. These accounts are zero balance accounts and no AMB related penalties are levied.
• Basic Savings Bank Deposit (BSBD) Accounts: BSBD accounts attract the poorer sections of society and encourage them save, with no burden of penalties and fees.
• BSBDA-Small Accounts: This type of savings accounts can be opened by individuals above the age of 18 years. You need not submit officially valid KYC. There are a lot of restrictions when it comes to operating the account because of insufficient KYC. These accounts are targeted at individuals from economically weaker sections. There are no AMB related penalties levied on these accounts.
•  Pehla Kadam and Pehli Udaan accounts: These accounts are designed for minors. Pehla Kadam accounts are opened jointly with a parent or a guardian. Pehli Udan accounts are operated by minors above the age of 10 and these accounts can be opened in the name of a minor.
• Minors, pensioners, recipients of social security welfare benefits and those receiving direct benefits (cash transfers) in their savings accounts, and students under the age of 21 years, are exempt from maintaining minimum balance in SBI savings accounts.

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