Penalty Charges Levied By Top Lenders For Non-Maintenance Of Minimum Balance

Banks today required their customers holding regular savings accounts to maintain a certain average monthly balance (AMB). Average monthly balance is the average of daily balances in a bank account over a month. Major commercial banks such as State Bank of India (SBI), HDFC Bank and ICICI Bank have set their rules on the requirement of average monthly balance based on factors such as the location of the account and the degree of shortfall. The banks charge a penalty from customers who fail to maintain an average monthly balance in their savings account.

Banks today required their customers holding regular savings accounts to maintain a certain average monthly balance (AMB). Average monthly balance is the average of daily balances in a bank account over a month. Major commercial banks such as State Bank of India (SBI), HDFC Bank and ICICI Bank have set their rules on the requirement of average monthly balance based on factors such as the location of the account and the degree of shortfall. The banks charge a penalty from customers who fail to maintain an average monthly balance in their savings account.

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

State Bank of India minimum balance requirements

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 official 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 pay the following penalty charges:

(As mentioned on SBI's official website)

HDFC Bank minimum balance requirements

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 official 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 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 pay the following penalty charges: