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Minimum Balance Rules Of Key Public, Private Lenders Explained Here

Banks charge a penalty from customers who fail to maintain an average monthly balance in their savings account.

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Minimum Balance Rules Of Key Public, Private Lenders Explained Here

The penalty varies according to various factors such as the location of branch.


Regular savings bank accounts require customers to maintain a certain average monthly balance (AMB). Leading banks such as State Bank of India (SBI), Canara Bank, HDFC Bank and ICICI Bank have fixed their monthly average balance requirements according to the location of a customer's account in urban, metro, semi-urban and rural areas. Banks charge a penalty from customers who fail to maintain an average monthly balance in their savings account. The penalty varies according to various factors such as the location of branch.

Here are the AMB requirements and penalty charges levied for non-maintenance of balance by SBI, Canara Bank, HDFC Bank and ICICI Bank:

State Bank of India (SBI)

Customers having a regular savings bank account in SBI branches located in metro and urban areas are required to maintain a monthly average balance of Rs. 3,000, according to the bank's website - sbi.co.in. Customers with SBI savings accounts in semi-urban and rural branches are required to maintain a minimum average balance of Rs. 2,000 and Rs. 1,000, respectively. Customers failing to meet these requirements have to bear the following penalty charges:

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

Canara Bank

Customers with a regular savings account in Canara Bank branches located in metro, urban and semi-urban areas need to maintain a monthly average balance of Rs. 1,000. Customers with accounts in rural branches are required to maintain an MAB of Rs. 500, according to the bank's website - canarabank.in. Customers failing to meet the MAB requirements have to bear the following penalty charges:

Non maintenance of Minimum balance chargesModification in charges (Based on Minimum Average Monthly Balance-AMB)
Metro / urban / semi-urban branchesRural branches
AMB maintained in the account against the stipulated Rs. 1,000Charges per month for violation of AMBAMB maintained in the account against the stipulated Rs. 500/-Charges per month for violation of AMB
Rs. 999 to Rs. 700Rs. 25 + applicable taxRs. 499 to Rs. 350Rs. 25 + applicable tax
Rs. 699 to Rs. 400Rs 35 + applicable taxRs. 349 to Rs. 200Rs. 35 + applicable tax
Rs 399 and belowRs 45 + applicable taxRs. 199 and belowRs. 45 + applicable tax

(As mentioned on Canara Bank's official website)

HDFC Bank

Customers having a regular savings account in HDFC Bank branches located in metro and urban areas are required to maintain an average monthly balance of Rs. 10,000, according to the bank's website - hdfcbank.com. In semi-urban branches, the regular savings account holders are required to maintain an average balance of Rs. 5,000 every month. In rural branches, the customers are required to either maintain an average quarterly balance (AQB) of Rs. 2,500. Customers failing to meet these requirements have to bear the following penalty charges:

Description of ChargesRegular Savings Account
Minimum Average Balance RequirementsMetro and 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 a period of 1 year 1 day
Charges applicable on non-maintenanceBalance non-maintenance charges
AMB Slabs Metro & UrbanSemi Urban
(in Rs.)AMB Requirement -Rs 10,000AMB Requirement -Rs. 5,000
>=7,500 to < 10,000Rs 150NA
>=5,000 to < 7,500Rs 300NA
>=2,500 to < 5,000Rs. 450Rs. 150
0 to < 2,500Rs. 600Rs. 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 having a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain an average monthly balance of Rs. 10,000, according to the bank's website - icicibank.com. The average monthly balance required in semi-urban, rural and gramin locations is Rs. 5,000, Rs. 2,000 and Rs. 1,000 respectively. Customers failing to meet these requirements have to bear the following penalty charges:

Minimum monthly average balance 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 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)

Banks also provide savings accounts which do not require customers to maintain any particular minimum balance.



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