State Bank of India closed 41.2 lakh savings accounts between April 2017 and January 2018 as they did not maintain the minimum required average monthly balance, the bank’s response to a Right to Information query showed. The bank has nearly 41 crore savings accounts, of which 25 crore are required to maintain a certain minimum balance amount.
The bank’s response came on February 28 to an RTI query filed by Chandra Shekhar Gaud from Madhya Pradesh, PTI reported.
India’s largest lender had started charging depositors the penalty on April 1, 2017. It requires savings accounts to maintain a minimum average monthly balance of Rs 3,000 in metropolitan areas, Rs 2,000 in semi-urban areas and Rs 1,000 in rural areas.
On Tuesday, the bank said it would reduce its penalties for not maintaining the minimum balance from April 1, by up to Rs 35 per month for metro centres and up to Rs 30 per month for rural branches.