CURRENT AFFAIRS

Detailed explanation-1: -State Bank of India has cut penalty charges for non-maintenance of average monthly balance (AMB) by up to 75%. State Bank of India (SBI) penalty for not maintaining minimum balance is much less than private banks.

Detailed explanation-2: -SBI, India’s largest bank, does not ask its customers to maintain a minimum balance. What is the minimum average daily balance?

Detailed explanation-3: -It is worth noting that while banks are allowed to charge non-maintenance of minimum balance penalty to the customers, there is no cap on the charges. The penal charges have to be approved by the bank’s board. Banks charge different charges based on the location of the account.

Detailed explanation-4: -Kotak 811 Zero Balance Account (Kotak Mahindra Bank-811 Digital Bank Account): Kotak 811 is a zero balance savings account that has zero charges and maintenance fees.