SBI changed 5 rules, affecting 42 crore customers

New Delhi, 11 October 2019, Friday

The first 10 days of the month of October have been completed. In the last 10 days, the country's largest bank, the State Bank of India (SBI), has changed many rules. These new rules will affect around 42 million customers in different categories. So let's find out which bank rules have changed.

Loan Borrowers Relief

SBI has reduced marginal cost-based interest rate (MCLR) by 0.10% on all types of loans. After this change, LCLR of 1 year loan has come down to 8.05%. However, these deductions do not apply to loans linked to the repo rate. The interest rate on other loans, including home loans, has declined since the bank's announcement. That means if you are already paying EMI on a SBI loan then your EMI will be reduced. If you are going to get a new loan from the bank then you have to pay less interest than before.

EMI on Debit Card

SBI has recently launched a special 'Debit Card EMI' feature. With this card, customers can shop on EMI with a debit card on a POS machine. Under this service, customers can have 6 to 18 months of EMI. Not only that, some brands will also have huge benefits like instant disbursement and no cost EMI. The customer will not require any documentation to use this feature.

Scissors on the amount deposited into the savings account

From November 1, the State Bank of India will provide 3.25 percent interest to those with deposits of up to Rs 1 lakh in a savings account. Until now, the bank was paying interest to consumers at such a rate of 3.50%. That means that the bank's Lakpati customers will now get 0.25 percent less interest. This decision by SBI is a shock to consumers investing in savings accounts.

Reduction on retail and block FD

SBI has also reduced interest rates on retail and block FDs with maturities ranging from 1 year to two years. SBI has reduced retail FD by 0.10%. After that, the interest rate on retail FD has dropped from 6.50% to 6.40%. SBI has cut block FD interest rate by 0.30%. It has now dropped from 6.30 percent to 6.00 percent.

Changes in monthly average balance

SBI has also modified the Monthly Average Balance (MAB). The information provided on the SBI website said that charges would be reduced if the monthly average balance was not maintained in the bank account. This reduction can be up to 80 percent. In addition, there was talk of a change in the rules regarding the extent of ATM transactions.