New Delhi, Mar 4 (Agencies) : From the beginning of the next financial year (April 1), failing to maintain a monthly average balance (MAB) in your State Bank of India (SBI) savings accounts will attract a charge.

SBI had suspended this charge in July 2012 to expand its customer base and generate low-cost deposits, as those in savings account earn interest rate of only 4 per cent. The bank said it is resuming the charge to partly cover costs for maintaining systems and operations of savings accounts. The charge will be calculated based on the gap between the MAB and the actual balance in the accounts.

According to an SBI communication, MAB for those with accounts at branches in metropolitan areas would be Rs 5,000. If the difference between the MAB and the actual amount in the account is 50 per cent or Rs 2,500, SBI will slap a charge of Rs 50. If the difference is between 50 and 75 per cent, SBI will charge Rs 75, and till 100 per cent, it will charge Rs 100.

For rural areas, MAB is lower — Rs 1,000. The penalty for not maintaining MAB is also much lower.

A senior SBI executive said the bank had, at present, 250 million savings accounts. “Since Prime Minister announced demonetisation of old Rs 500 and Rs 1,000 notes on November 8 last year, the bank had opened a large number of savings accounts — especially till end-December,” he said.

The executive added, “Managing these accounts, including those with zero balance, involves expenses such as running operations and systems. It is also an effort to stem the outflow of money from savings accounts, especially those opened recently.”

SBI is not alone. Private banks also charge a levy for non-maintenance of minimum balance.

For instance, HDFC Bank’s average monthly balance (AMB) requirement for a regular savings account is Rs 10,000 for metro or urban branches and Rs 5,000 for semi-urban branches. If the actual amount in the savings account is greater than or equal to Rs 7,500 but less than Rs 10,000, a levy of Rs 150 is charged; if it is greater than or equal to Rs 5,000 but less than Rs 7,500, there is a levy of Rs 300. There is no levy in semi-urban areas.