Minimum Balance Rules: Penalty Charges Levied By Top Banks For Non-Compliance

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Regular savings bank accounts require customers to maintain a certain average monthly balance (AMB). Leading lenders such as State Bank of India (SBI), 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 also charge a penalty from customers who fail to maintain an average monthly balance in their savings account. The penalty varies on factors such as the location of branch.



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

State Bank of India

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)



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 or set up a fixed deposit of Rs. 10,000 for a maturity period of a minimum one year and one day. 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 balanceMetro 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 balanceMetro/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)

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