Savings Bank Rules
Savings Bank Rules
Savings Bank Rules
Minors Accounts
Minors who can adhere to uniform signature and are not less than ten years old can open accounts in their single
name and maintain therein a maximum balance of Rs. 200,000/- (Rs. Two lacs only). Minors may open joint
accounts with their guardians. (Rule No. 3)
Pass Book
The pass book and cheque book supplied to the account holder should be kept in a safe place. The Bank will not
be responsible for any loss or incorrect payment attributable to the account holders neglect in this regard. (Rule
Nos. 18, 29). For withdrawing cash by means of a withdrawal form, the pass book must be presented.
Withdrawals using cheque forms and Debit card can be effected without pass book. Deposits may be made
without production of the pass book. (Rule No. 15) Pass book should be got updated regularly. The pass book
will be returned to the accountholder immediately after completion of the transaction duly updated. In case it is
not collected within a weeks time, it will be returned to them by Registered A.D. post/ Courier at their cost. (Rule
No. 16) The account holders should carefully examine the entries in their pass books and draw the Banks
attention to errors or omissions, if any. (Rule No. 17)
Duplicate in lieu of the lost or mutilated pass book may be issued on receipt of a written request from the account
holder after necessary enquiries, completion of formalities and recovery of prescribed charges. The current
charges prescribed for this are available at the Banks website www.statebankofindia.com. This information can
also be obtained from Branches. (Rule No. 20)
Cheque Book
The Bank will issue the first cheque book after completion of all formalities with regard to opening of the account.
No charge will be recovered for issue of twenty five cheque leaves in a year (both MICR and non MICR).
Thereafter, service charge will be charged to the customers account. The current charges prescribed for this are
available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches.
The account holders must use only the cheques from the cheque books issued to them by the Bank.The Bank
reserves the right to refuse payment of any cheques drawn otherwise. Ordinarily, Bank will not issue more than
one cheque book at a time or before exhausting all or nearly all cheque leaves issued previously. (Rule No. 27)
Cheques must be written legibly and any alterations or cuttings should be authenticated under full signature
which must conform to the specimen recorded with the Bank. (Rule No. 28) Stop payment instructions in respect
of cheques issued or lost can be registered with the Bank on payment of a prescribed service charge. The
current charges prescribed for this are available at the Banks website www.statebankofindia.com. This
information can also be obtained from Branches. (Rule No. 32)
Deposits
There is no restriction on number of deposits that can be made into the account. No deposit in cash for less than
Rs 10/- will be accepted. Cheques, drafts or other instruments drawn only in favour of the account holder will be
accepted for credit of the account. Third party instruments endorsed in favour of the account holder will NOT be
accepted. No drawings against accepted instruments will be normally permitted until these are realized. In
satisfactorily conducted accounts, immediate credit will be afforded for outstation instruments deposited up to Rs
20000/-, which may change from time to time. The normal collection and out of pocket charges will be recovered.
The current limit and charges prescribed for this are available at the Banks website www.statebankofindia.com.
This information can also be obtained from Branches. Overdue interest will be recovered for instruments
subsequently returned unpaid. (Rule Nos. 21, 22, 23)
Withdrawals
The accountholder can withdraw money personally from her/ his ordinary Savings Bank Account by using Banks
standard withdrawal form. The pass bookmust accompany the withdrawal form.The withdrawal form can be used
only for receiving payments by the accountholder himself/ herself. ATM cum Debit card can also be used in ATMs
for cash withdrawal. The accountholder cannot withdraw an amount less than Rs. 50/-. All withdrawals must be in
round Rupees only. Third party payments through withdrawal forms are not permitted. A letter of authority as per
the prescribed format, along with the pass book should be sent to the Bank through an authorized representative
to receive payment in case the account holder is unable to attend personally to withdraw cash from her/his
account. (Rule Nos. 24, 25, 26) The minimum drawing permitted per cheque form is limited to Rs. 50/-. There is
no ceiling on the maximum amount that can be drawn through a single cheque. (Rule No. 30) The maximum
number of debit entries permitted in an account is 30 per half year or as decided by the Bank from time to time,
excluding transactions through alternate channels like State Bank ATMs and Internet Banking.Cash withdrawal at
ATMs of other banks will be counted as a debit entry in the account for the above purpose and are not to be
treated as transactions made through alternate channels.Charges prescribed for exceeding this limit are
available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches.
(Rule No. 35) Cash withdrawal can be made from the accounts of the sick, old or incapacitated account holders
who are unable to attend the Bank and/or also not able to put their signature or thumb impression for withdrawing
cash by completing the laid down formalities. (Rule No. 33)
Overdrafts
Overdrafts in Savings Bank accounts may be permitted under exceptional circumstances with prior arrangements
only. Cheques drawn in excess of the balance in the account will be returned unpaid. Service charge will be
recovered each time a cheque is returned unpaid for want of sufficient funds. Charges prescribed for this are
available at the Banks website www.statebankofindia.com. This information can also be obtained from Branches.
(Rule No. 31)
Inoperative Accounts
Account holders are advised to operate their accounts regularly. Accounts not operated are classified as
Inoperative after the stipulated time period of 24 months since last operation. Inoperative accounts having less
than the stipulated minimum balance will be charged a service charge at the end of the first year after the
account is identified as inoperative and thereafter every year, if the account remains inoperative. If the balance in
the account is equal to or less than the service charge, the account will be closed under advice to the account
holder. The current prescribed charges in this regard are available at the Banks website
www.statebankofindia.com. This information can also be obtained from Branches. (Rule Nos. 36, 37)
Standing Instructions
The account holder can request the Bank for effecting periodical payment of insurance premium, membership
fees etc. by debit to her/ his account on payment of service charges. The current prescribed charges for Standing
Instruction are available at the Banks website www.statebankofindia.com. This information can also be obtained
from Branches. (Rule No. 40)
Payment of Interest
As per RBI guidelines applicable from time to time. Interest will be calculated on a daily product basis. Interest
will be credited to the account at half yearly intervals. Interest will be paid only if works out to Re1/- or more.
Thereafter fifty paise and more will be rounded off to the next higher rupee and anything less will be ignored. In
case of accounts frozen by the enforcement authorities, Bank shall continue to credit the interest to the account
on a regular basis. (Rule Nos. 41, 42)
Change in Rules
The Bank reserves the right to alter, delete or add to any of these Rules and service charges for which the
customer will be duly notified through Bank's website and/ or branch notice board. (Rule Nos. 39, 46)