Regular savings accounts in banks require customers to maintain a certain minimum average balance (MAB) every 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 in urban, metro, semi-urban and rural areas, among other factors. Customers failing to meet the MAB requirements in a month have to bear certain penalty charges. The amount of penalty varies on the basis of branch location.
Regular savings accounts in banks require customers to maintain a certain minimum average balance (MAB) every 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 in urban, metro, semi-urban and rural areas, among other factors. Customers failing to meet the MAB requirements in a month have to bear certain penalty charges. The amount of penalty varies on the basis of branch location.
Explained below are penalty charges levied by SBI, HDFC Bank, ICICI Bank and Kotak Mahindra Bank for non-maintenance of the required monthly average balance (minimum balance):
State Bank of India (SBI)
SBI customers with accounts in metro and urban branches are required to maintain a minimum average balance of Rs 3,000 every month. Customers with accounts in semi-urban branches are required to maintain an MAB of Rs 2,000, and those with accounts in rural branches are required to maintain an MAB of Rs 1,000, according to the bank's website - sbi.co.in.
Non-maintenance of the MAB requirements lead to these penalty charges:
(As mentioned on SBI's website)
HDFC Bank
Customers with a regular savings account in HDFC Bank branches located in metro and urban areas are required to maintain a monthly average balance of Rs 10,000. The monthly average required in semi-urban and rural locations is Rs. 5,000 and Rs 2,500 respectively, according to the bank's website - hdfcbank.com
Customers failing to meet the MAB requirements in a month have to bear the following penalty charges:
(As mentioned on HDFC Bank's website)
ICICI Bank
Customers with a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain an MAB of Rs 10,000, according to the bank's website - icicibank.com.
Here are the charges for non-maintenance of 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.
Here are the charges for non-maintenance of MAB:
However, there are certain accounts where MAB rules are not applicable. These accounts are called as zero balance savings accounts.
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