In the event of minimum balance is not maintained, then these banks have started levying a fee, causing much inconvenience to customers of SB accounts.
For example, a savings bank account holder with HSBC would now be required to maintain a minimum monthly average balance of Rs 75,000 against Rs 25,000 required earlier and a minimum of Rs 25,000 in a savings bank deposit.
However, most foreign banks have maintainted that the move to enhance the monthly average balance has nothing to do with RBI removing the last bastion in administered rates.
HSBC said the norm would be applicable to existing and new customers. For Citibank customers, the minimum requirement that a savings bank account holder is required to maintain is over Rs 2 lakh. However, these norms do not apply to salary accounts.
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