Minimum Balance Rules Of Key Public, Private Lenders Explained Here
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 charges | Modification in charges (Based on Minimum Average Monthly Balance-AMB) | |||
|---|---|---|---|---|
| Metro / urban / semi-urban branches | Rural branches | |||
| AMB maintained in the account against the stipulated Rs. 1,000 | Charges per month for violation of AMB | AMB maintained in the account against the stipulated Rs. 500/- | Charges per month for violation of AMB | |
| Rs. 999 to Rs. 700 | Rs. 25 + applicable tax | Rs. 499 to Rs. 350 | Rs. 25 + applicable tax | |
| Rs. 699 to Rs. 400 | Rs 35 + applicable tax | Rs. 349 to Rs. 200 | Rs. 35 + applicable tax | |
| Rs 399 and below | Rs 45 + applicable tax | Rs. 199 and below | Rs. 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 Charges | Regular Savings Account | ||
|---|---|---|---|
| Minimum Average Balance Requirements | Metro 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-maintenance | Balance non-maintenance charges | ||
| AMB Slabs | Metro & Urban | Semi Urban | |
| (in Rs.) | AMB Requirement -Rs 10,000 | AMB Requirement -Rs. 5,000 | |
| >=7,500 to < 10,000 | Rs 150 | NA | |
| >=5,000 to < 7,500 | Rs 300 | NA | |
| >=2,500 to < 5,000 | Rs. 450 | Rs. 150 | |
| 0 to < 2,500 | Rs. 600 | Rs. 300 | |
| plus taxes as applicable | |||
| AMB (average monthly balance) | |||
| AQB Slabs (in Rs.) | Balance non-maintenance charges (per quarter) - rural branches | ||
| >= 1000 < 2,500 | Rs. 270 | ||
| 0 - <1000 | Rs. 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.