In a big relief to its customers ahead of Diwali, the State Bank of India has reduced the minimum account balance (MAB) requirement from Rs 5000 to Rs 3000.
The move, announced by the country's largest lender State Bank on Monday is expected to directly benefit as much as 5 crore account holders.
The new minimum account balance requirement of Rs 3,000 will be the same for all banks including branches in metro cities and urban areas.
Additionally, the bank has also brought down service charges on not maintaining monthly average (MAB) balance by a whopping 20-50%.
“We would like to state that financial inclusion including JAN DHAN accounts has never been subject to any charges," SBI said in a statement.
"It has now been decided to exempt the pensioners, beneficiaries of social benefits from the Government and accounts of Minors,” the country’s largest lender State Bank said.