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State Bank of India Savings Bank Rules (ABRIDGED)

For those looking to open a savings account, they would first have to comply to certain terms and conditions, or in other words, the rules and regulations set by the particular bank to open a savings account. Like most other banks, State Bank of India has a list of ruled or guidelines for their customers to follow if they wish to open a savings account with them. The rules for different categories in relation to a savings account are listed below.

KYC (Know Your Customer) Guidelines

Following the first rule to open a savings account, customers need to submit their KYC documents - Address and Identity Proof - when applying to open a savings account with State Bank of India. Once the customer submits the KYC documents, the bank will make a verification and decide whether he/she is eligible to open a savings account with them.

Survivorship Facility and Nomination

When opening a savings account, the customer is required to make a nomination. The nomination facility makes the process of handing over the savings to the nominee or legal heir smoother following the death of the account holder. On the account opening application form, the customer is required to make a nomination. If he/she disagrees with making a nomination, then a reason for the same has to be stated. In the case of joint account, the survival benefit will be passed on to the person he/she is sharing a joint account with automatically - which is known as the survivor benefit.

Types of Accounts, Service Charges and Balance Stipulation

The customer has the choice of which account he/she wishes to open with State Bank of India. The service charges vary between savings account and solely depends on the account type selected by the customer. With regard to balance in the account, there is no maximum amount a customer can have in his/her bank account, unless he/she is a minor. For minor accounts, there is a ceiling limit to how much one can have in the savings account.

Minor Savings Account

Parents and guardians can open a savings account on behalf of their child. The minor has to be over the age of 10 years old to open an account independently. The maximum amount a minor can hold in his/her account is Rs.2 lakh.

How Customers can open a Savings Account

A savings account can be opened by a customer at any bank branch of State Bank of India. To do so, he/she needs to visit the bank branch and fill the application form. With the application form, the customer has to submit two passport size photographs and their KYC documents - for verification processes. The customer is required to attest the application form with his/her personal signature. The signature is required to be legible and not in bold or capital letters. The signature is required to be uniform through the application form.

Passbook Guidelines

  • The customers is solely responsible for loss of his/her passbook.
  • When making a withdrawal at the bank using the withdrawal form, the customer is required to submit the passbook to finalise the withdrawal.
  • The passbook is not required when making withdrawals with one’s debit card or cheque form.
  • The passbook has to be updated regularly and the customer is required to go through the passbook updates and report any errors or discrepancies.
  • Customers can apply for a replacement after making a written request to the bank .

Cheque Book Guidelines

  • Once all the account opening formalities are over, the customer is handed a cheque book for free - consisting of 25 leaves.
  • The customer has to pay a service fee for the second cheque book onwards. The charges will be debited from the customer’s savings account.
  • For that particular savings account, the customer has to use the cheques from the cheque book issued to them. Else, the bank has every right to refuse the cheque payment.
  • The cheque details should be legible and the signature of the customer has to be uniform with that on the account opening form.
  • If the customer due to some reason wishes to stop the cheque payment, service charges will be applicable.

Guidelines for Account Operations

Savings Account Guidelines:

The savings account should be utilized by the customer for its very point - accumulating savings. At no point can a savings account be used like a current account. The bank has every right to close the account if they see a misuse of the account.

Deposit Guidelines:

  • With regard to deposits, there is no limit on how much a customer can deposit in his/her account. Deposits less than Rs.10 will not be accepted by the bank.
  • Only cheques or drafts addressed to the account holder will be accepted as credit to the account.
  • For deposits more than Rs.50,000, customers will be required to submit their PAN card details.
  • Refer to the bank’s website for service charges for deposits.

Withdrawal Guidelines:

  • Customers can make withdrawals directly from the bank using the withdrawal form. The withdrawal form has to be submitted by the account holder in person. To do this, the customer has to submit his/her passbook as well. The account holder should submit a letter of authority if he/she cannot be present to make the withdrawal personally at the bank. This can be done if the account holder is sick, incapacitated, old, etc.
  • Customers cannot make withdrawals less than Rs.50 from ATMs. All withdrawals should be round figures.
  • The maximum number of withdrawals a customer can make from his/her account is 30 for half a year, unless changed by the bank from time to time. All charges for exceeding the number of debit entries are displayed on the State Bank of India website.

Overdraft Guidelines:

  • Overdraft facility is allowed only in exceptional circumstances.
  • If the cheques drawn in excess of the balance of the account, the cheque will return unpaid.
  • For returned unpaid cheques, service charges are applicable. All related charges are displayed on the bank’s website.

Inoperative Account Guidelines:

Accounts that have not been operative over a period of 24 months will be deemed as an inoperative account. If the account has less than the minimum required balance, the account will be charged a penalty for non-maintenance. If the balance is less than or equal to the penalty for non-maintenance, the account will be closed.

Standing Instructions Guidelines:

The charges for standing instructions for insurance premiums, account details and so on vary from bank to bank. For those holding an account with SBI, they can visit the site for the standing instruction charges.

Payment of Interest Guidelines:

Interest rates on deposits are subject to changes made by the Reserve Bank of India. For SBI savings account holders, the interest on deposits will be calculated quarterly and will be paid if the interest works out to more than Rs.1 - if more than 50 paise, it will be rounded to the next rupee. Even if the account is frozen, the balance in the account will continue to earn interest.

Closure and Transfer of Account Guidelines:

  • Account holders can transfer their bank account from one SBI branch to another by making a request to the current bank branch.
  • If the account holder wishes to close the account, he/she has to state the reason for closing the account. The account holder has to even submit the passbook, unused cheques and debit card (after cutting the magnetic strip) to the bank when closing the account.
  • Joint accounts can be closed only when both parties have signed and agreed to the closure of the account. Account closure within 12 months will be applicable for a service charge.

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