India's largest bank SBI today announced that it will waive charges for non-maintenance of average monthly balance (AMB) for all 44.51 crore savings bank accounts. Currently SBI savings bank customers need to maintain average monthly balance of ₹3000, ₹2000 and ₹1000 in metro, semi urban and rural areas respectively. Bank used to levy a penalty of ₹5 to ₹15 plus taxes on non-maintenance of average monthly balance.

SBI has also waived of SMS charges. India's biggest bank has also rationalised interest rate on savings bank account to a flat 3% per annum for all buckets. Currently, the interest rate on SBI saving accounts is 3.25% for deposits up to ₹1 lakh, and 3% for deposits above ₹1 lakh.

“This announcement will bring in more smiles and delight to our valuable customers. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI," chairman Rajnish Kumar said in a statement.

SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It is also the largest mortgage lender in the country. As on December 31, 2019, the bank has a deposit base of over Rs. 31 lakh crore with 21,959 branches in India.

Earlier in the day, SBI had announced a cut in its MCLR or marginal cost of fund-based lending rate by up to 15 basis points across various tenors effective March 10, a move which will make home and auto loans cheaper. SBI has reduced its one-year MCLR by 10 basis points to 7.75%, from 7.85% earlier. This is 10th consecutive cut in MCLR by the bank in the current fiscal.

SBI also today cut interest rates on fixed deposits or FDs for second time in a month. The revised rates came into effect from 10th March. (Check latest SBI FD rates)

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