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Minimum Balance Requirements, Non-Maintenance Charges: State Bank of India (SBI) Vs ICICI Bank Vs HDFC Bank

State Bank of India has cut penalty charges for non-maintenance of average monthly balance (AMB) by up to 75%.

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Minimum Balance Requirements, Non-Maintenance Charges: State Bank of India (SBI) Vs ICICI Bank Vs HDFC Bank

State Bank of India (SBI) penalty for not maintaining minimum balance is much less than private banks.

State Bank of India has cut penalty charges for non-maintenance of average monthly balance (AMB) by up to 75 per cent. The new rates will come into effect on April 1, 2018, according to an official statement of SBI. India's largest bank SBI had faced massive criticism for earning a windfall of Rs 1,771.67 crore between April and November 2017, more than its second quarter profit of Rs 1,581.55 crore. However, the country's largest lender's penalty on customers for not maintaining minimum balance is much less than its private sector peers, though.

The move will eat into the fee income of SBI, which had reported first quarterly loss in 20 years, as it had to make huge provisions for bad loans.
 
Here is a comparison of penalties on non-maintenance of minimum balance and minimum balance requirements of SBI, ICICI Bank and HDFC Bank:

(Also Read: Comparison Of ICICI Bank, HDFC Bank, SBI, Bank of Baroda FD Interest Rates)

SBI charges for non-maintenance of average monthly balance across various categories
 
Metro & Urban (AMB Rs. 3000/-)Existing Charges p.m.Proposed Charges p.m.
Shortfall   < = 50%Rs. 30/- +GSTRs. 10/- +GST
Shortfall   > 50 – 75%Rs. 40/- +GSTRs. 12/- +GST
Shortfall   > 75%Rs. 50/- +GSTRs. 15/- +GST
Semi-Urban (AMB Rs. 2000/-)  
Shortfall    < = 50%Rs. 20/- +GSTRs   7.50 +GST
Shortfall    > 50 – 75%Rs. 30/- +GSTRs 10.00 +GST
Shortfall    > 75%Rs. 40/- +GSTRs.12.00+GST
Rural (AMB Rs. 1,000/-)  
Shortfall    < = 50%Rs. 20/- +GSTRs   5.00 +GST
Shortfall    > 50 – 75%Rs. 30/- +GSTRs.  7.50 +GST
Shortfall    > 75%Rs. 40/- +GSTRs 10.00 +GST

(Also Read: SBI Interest Rates On Savings Bank Account Vs Recurring Deposit Vs Fixed Deposit)

SBI's minimum monthly balance requirement

(Also Read: Latest SBI Interest Rates On Recurring Deposits, Fixed Deposits)

SBI has not as yet lowered the monthly minimum balance requirement for metro, semi-urban and rural accounts, according to the website of SBI, sbi.co.in.
 
Metro accountsRs 3,000
Semi-urban accountsRs 2,000
Rural accountsRs 1,000


ICICI Bank's charges for non-maintenance of average monthly balance across various categories, according to icicibank.com

 
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


ICICI Bank's minimum monthly balance requirement

 
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


HDFC Bank's charges for non-maintenance of average monthly balance across various categories
 
Charges applicable on Non-Maintenance of AMB for NRE/NRO Savings Account (Average Monthly Balance)Revised AMB Structure effective 1st April, 2015
AMB SlabMetro/UrbanSemi Urban/Rural
>=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/-


HDFC Bank's minimum monthly balance requirement
 
Minimum Balance - Average Monthly Balance (AMB) RequirementRs 10,000 (Metro / Urban branches)
Rs 5, 000 (Semi-Urban / Rural branches)

Last April, SBI had re-introduced the penalty charges on non-maintenance of average monthly balance, after a gap of five years. Later in October, the bank had revised down the charges to some extent.

(With PTI Inputs)

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