Banks today charge a penalty from their customers failing to meet the minimum balance requirements applicable to savings accounts. Public sector lender State Bank of India (SBI) and its private sector peers ICICI Bank and HDFC Bank levy a penalty to the tune of Rs 5 to Rs 600 (excluding taxes) for insufficient average of balances in a month - known as average monthly balance (AMB) - in their regular savings accounts. In other words, this penalty is applicable to regular savings account holders failing to meet with their bank's balance requirements in a specified period. (Also read: You need this much balance in your savings account to avoid penalty charges | Your SBI savings account balance may fetch lesser interest now, here's why)
Here are the bank charges applicable to regular savings bank accounts with insufficient balance in top banks (SBI, ICICI Bank and HDFC Bank):
SBI charges for insufficient account balance
| Shortfall | Penalty for non-maintenance of AMB |
|---|---|
| Metro branches | |
| Shortfall less than or equal to 50% | Rs. 10 + GST |
| Shortfall of greater than 50% and up to 75% | Rs. 12 + GST |
| Shortfall greater than 75% | Rs. 15 + GST |
| Urban branches | |
| Shortfall < = 50% | Rs. 10 + GST |
| Shortfall > 50 - 75% | Rs. 12 + GST |
| Shortfall > 75% | Rs. 15 + GST |
| Semi-urban branches | |
| Shortfall < = 50% | Rs. 7.5 + GST |
| Shortfall > 50 - 75% | Rs. 10 + GST |
| Shortfall > 75% | Rs. 12 + GST |
| Rural branches | |
| Shortfall < = 50% | Rs. 5 + GST |
| Shortfall > 50 - 75% | Rs. 7.5 + GST |
| Shortfall > 75% | Rs. 10 + GST |
| (Source: sbi.co.in) | |
State Bank of India (SBI) levies a fine of Rs 5-15 plus GST (Goods and Services Tax) from its customers failing to meet the bank's average monthly balance criteria in regular savings accounts, according to its website - sbi.co.in.
ICICI Bank charges for insufficient account balance
| Branch type | "Charges for non maintenance of minimum monthly average balance (NMMAB) |
|---|---|
| Metro/Urban/Semi-Urban/Rural locations | Rs. 100 + 5% of the shortfall in required MAB |
| "Gramin" locations | 5% of the shortfall in required MAB |
| (Source: icicibank.com) | |
ICICI Bank charges a penalty amounting to Rs 100 plus 5 per cent of the shortfall in the required monthly average balance (MAB) from regular savings bank account holders failing to maintain the required funds, according to the lender's website - icicibank.com.
HDFC Bank charges for insufficient account balance
| Charges applicable for non-maintenance of AMB (excluding taxes) | ||
|---|---|---|
| AMB slab | Metro and urban branches | Semi urban branches |
| >=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 |
| AQB slab | Rural branches | |
| >= 1000 < 2,500 | Rs. 270 | |
| 0 - <1000 | Rs. 450 | |
| (Source: hdfcbank.com) | ||
HDFC Bank levies a penalty to the tune of Rs 150-600 from customers failing to maintain the required average monthly balance in their regular savings accounts with the bank in a month, according to its website - hdfcbank.com.
Factors determining bank charges for insufficient account balance
The amount of penalty charged by the major banks from their regular savings account holders depends on factors such as the type of branch and the degree of shortfall in the account balance from the required amount.
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