Minimum Balance Rules: Here's How Much Top Banks Charge For Non-Compliance

Monthly average balance: Leading lenders of the country have fixed their MAB requirements according to the location of a customer's account.

Minimum Balance Rules: Here's How Much Top Banks Charge For Non-Compliance

Monthly average balance: SBI, HDFC Bank and ICICI Bank have fixed their MAB requirements.

Most of the banks in the country require customers to maintain a certain Monthly Average Balance or MAB in their savings bank accounts, failing which they have to bear certain penalty charges. Monthly Average Balance (MAB) is the sum of all the end of day (EOD) closing balance divided by the number of days in that month. Leading lenders such as State Bank of India (SBI), HDFC Bank, ICICI Bank and Kotak Mahindra Bank have fixed their monthly average balance requirements according to the location of a customer's account and charge customers for non-maintenance of minimum average balance in their savings accounts.

(Also read: Transaction Charges On ATM-Cum-Debit Cards Levied By Top Banks)

Given below are the AMB requirements and penalty charges levied for non-maintenance of AMB by SBI, HDFC Bank, ICICI Bank and Kotak Mahindra Bank:

State Bank of India (SBI)

Customers with a regular savings account in SBI branches located in metro and urban areas need to maintain a monthly average balance of Rs 3,000, according to the bank's website - sbi.co.in. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 2,000 and Rs 1,000 respectively, noted SBI.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Metro and urban branch (required MAB Rs 3,000)Charges
Shortfall <= 50%Rs. 10 + GST
Shortfall > 50-75%Rs. 12 + GST
Shortfall > 75%Rs. 15 + GST
Semi-urban branch (required MAB Rs 2,000) 
Shortfall <= 50%Rs 7.50 + GST
Shortfall > 50-75%Rs 10 + GST
Shortfall > 75%Rs.12 + GST
Rural (required MAB Rs 1,000) 
Shortfall <= 50%Rs 5 + GST
Shortfall > 50-75%Rs. 7.50 + GST
Shortfall > 75%Rs 10 + GST

(As mentioned on SBI's official website)

HDFC Bank

Customers with a regular savings account in HDFC branches located in metro and urban areas need to maintain a monthly average balance of Rs 10,000, according to the bank's website - hdfcbank.com. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 5,000 and Rs 2,500 respectively.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Description of ChargesRegular Savings Account
Minimum Average Balance RequirementsMetro / Urban branches: AMB Rs.10,000/-,
Semi-Urban Branches: AMB Rs.5,000/- ,
Rural Branches: AQB Rs.2,500/- or Fixed Deposit of Rs. 10,000 for minimum 1 year 1 day period
Charges applicable on non-maintenanceBalance Non-Maintenance Charges*
AMB Slabs Metro & UrbanSemi Urban
(in Rs.)AMB Requirement -Rs 10,000/-AMB Requirement –Rs. 5,000/-
>=7,500 to < 10,000Rs. 150/-NA
>=5,000 to < 7,500Rs. 300/-NA
>=2,500 to < 5,000Rs. 450/-Rs. 150/-
0 to < 2,500Rs. 600/-Rs. 300/-
* plus taxes as applicable 
AMB – Average Monthly Balance
 
AQB Slabs (in Rs.)Balance Non-Maintenance Charges* (per quarter) - Rural Branches
>= 1000 < 2,500Rs. 270/-
0 - <1000Rs. 450/-
*plus taxes as applicable 
AQB – Average Quarterly Balance

(As mentioned on HDFC Bank's official website)

ICICI Bank

Customers with a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain a monthly average balance of Rs 10,000, according to the bank's website - icicibank.com. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 5,000 and Rs 2,500 respectively.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Minimum monthly average balance (MAB)*Metro and Urban locations - Rs.10,000
Semi-urban locations - Rs.5,000
Rural locations - Rs 2,000
Gramin locations - Rs.1,000
Charges for non maintenance of minimum monthly average balance (NMMAB)Metro/Urban/Semi-Urban/Rural locations :
Rs. 100 + 5% of the shortfall in required MAB
Gramin locations : 5% of the shortfall in required MAB

(As mentioned on ICICI Bank's official website)

 

Kotak Mahindra Bank

Customers with a regular savings account in Kotak Bank branches located in metro and urban areas need to maintain a monthly average balance of Rs 10,000, according to the bank's website - kotak.com.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Particulars Charges
NMC (Non Maintenance Charges)If AMB <=25% of required Product AMBRs.500
If Salary upload is not sighted for 2 consecutive months and AMB not maintainedIf AMB >25% <=50% of required Product AMBRs.400
 If AMB >50% <= 75% of required Product AMBRs.300
 If AMB >75% of required Product AMB but less than product AMBRs.150

However, there are certain accounts where MAB rules are not applicable. These accounts are called as zero balance savings accounts.

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