After slashing monthly average balance requirement and charges for its savings bank account holders, SBI has revised the account closure charges. In a Twitter post, SBI said that closure of regular savings account on conversion to basic savings bank account, which earlier used to attract a charge of Rs. 500 plus GST of 18 per cent, will be nil from October 1, 2017. Similarly, savings accounts closed on settlement of deceased depositors, will also be exempt from charges with effect from October 1. Currently a charge of Rs. 500 plus GST is levied on them.

Currently, if you close a savings account in SBI after one year of opening it, it attracts a charge of Rs. 500 plus GST. But, from October 1, there will be nil charges for this service, SBI said in a tweeter post.

SBI Minimum Account Balance Rules

In a recent move, SBI reduced the monthly average balance (MAB) requirement for metro cities - from Rs. 5,000 to Rs. 3,000 - and slashed charges for non-maintenance of minimum balance by up to 50 per cent. SBI further said that savings accounts of pensioners, beneficiaries of social benefits from the government and the accounts of minors will be exempt from maintaining monthly average balance.

Earlier, the monthly average balance required for savings accounts was Rs. 5,000 in metro branches. Now, that stands reduced to Rs. 3,000. Earlier, the charges for non-maintenance of minimum account balance in metro accounts used to range from Rs. 50 to Rs. 100 plus GST of 18 per cent. Now, these charges stand reduced to Rs. 30-Rs. 50.

For urban branch accounts also SBI has cut the charges for non-maintenance of monthly average balance to Rs. 30-Rs. 50, from Rs. 40-Rs. 80 earlier. SBI has also reduced charges for non-maintenance of minimum balance in semi-urban and rural accounts to Rs. 20-Rs. 40. Earlier, SBI charged between Rs. 25 and Rs. 75 for semi-urban account and Rs. 20-Rs. 50 for rural accounts.

The monthly average balance requirement for other three categories of accounts - urban, semi-urban and rural branches - stands unchanged at Rs. 3,000, Rs. 2,000 and Rs. 1,000 respectively, according to SBI.