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.
Here are the penalty charges levied for non-maintenance of balance by SBI, HDFC Bank and ICICI Bank:Â
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:
| 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 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:
| 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 minimum balance requirements
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 pay 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.
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