The State Bank of India on Tuesday reduced its charges on non-maintenance of an average monthly balance (AMB) in savings accounts from April 1.
The charges for non-maintenance of AMB (Average Monthly Balance) for customers in metro and urban centres have been reduced from a maximum of ₹50 per month plus goods and services tax (GST), to ₹15 per month plus GST.
This will benefit 25 crore bank customers.
For semi-urban and rural centres, the charges have been reduced from ₹40 per month plus GST to ₹12 and ₹10 per month plus GST, respectively.
SBI also offers its customers to shift from a regular savings bank account to basic savings bank deposit account (BSBD) on which no charges are levied.
The State Bank of India has cut home loan rates to a 9.1% -the lowest in six years -as part of a festive scheme and its aggressive cut in home loan rates comes at a time when the banking sector is seeing an extremely sluggish growth in loans.
The interest rate cut comes on the back of a general interest rate reduction last week when SBI reduced its benchmark rates by 15 basis points (bps, 100bps = 1percentage point).
In addition to rate reduction, the bank has waived off all processing fees, in some cases.
INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA) DIRECTS THE STATE BANK OF INDIA`S INSURANCE ARM (SBI LIFE) TO REFUND RS 275 CRORES, THE PREMIUM COLLECTED FROM POLICY HOLDERS FOR MISREPRESENTING THE FACTS ABOUT THE PLAN.
THE SAID PLAN WAS POSITIONED AS TWO YEAR PREMIUM PAYING TERM FOR COVERING HOME LOANS BORROWED BY THE HOME LOAN CLIENTS OF STATE BANK OF INDIA, BUT COLLECTED THE PREMIUM IN A SINGLE GO (UPFRONT)TO GIVE THEM THE COVERAGE.
THE BORROWERS OF HOME LOAN HAD PAID THIS PREMIUM UPFRONT.
THIS LIABILITY ALSO ADDS UP TO THEIR COMMITMENT.
MOST OF THE HOME LOAN BORROWERS MIGHT ALREADY HAVE BOUGHT INSURANCE (LIFE COVER) BUT THIS ADDITIONAL COVERAGE (HOME LOAN-INSURANCE COVER) WILL BE AN ADDED BURDEN AND THIS WILL INCREASE THE LOAN LIABILITY AND THE INTEREST WITHOUT THE KNOWLEDGE OF THE BUYERS AND BORROWERS.