A bank will have minimum balance requirements when you start a savings account. The minimum balance may differ based on the kind of account and services the bank provides. Failure to maintain this level may result in fines from the bank. The purpose of these fees is to cover the expenses associated with keeping and overseeing your bank account.

PSU banks reportedly collected penalties of Rs 8,495 crore from clients who failed to have a minimum balance in their savings accounts over the previous five years. Numerous other banks continue to impose similar fees, even though the State Bank of India (SBI) did out with them a few years ago.

What Is The Minimum Balance?

The minimum balance is the bare minimum that a given bank demands in your savings account. A consumer may be charged a penalty if their account balance is less than the predetermined level. This sum may vary from bank to bank and depending on the kind of account you have and the complimentary services the bank provides.

State Bank of India (SBI)

There is no fee for failure to keep a minimum balance. If the required monthly average balance is not maintained, SBI does not charge any fees. In 2020, these fees were removed.

HDFC Bank

In Metropolitan And Urban Areas: You must keep a balance of Rs 10,000 or have a Rs 1 lakh fixed deposit with a one-year minimum term.
In Semi-Urban Areas: A Rs 50,000 fixed deposit or a balance of Rs 5,000 is needed.
Penalty: Rs 600 or 6% of the average balance shortages, whichever is less.

ICICI Bank

Minimum Monthly Average Balance (MAB): Rs 5,000.
Penalty: Rs 100 plus 5% of the requisite MAB that is not provided.

Punjab National Bank (PNB)

In Rural Areas: Minimum balance of Rs 400.
In Semi-Urban Areas: Minimum balance of Rs 500.
In Urban/Metro Areas: Minimum balance of Rs 600.
Penalty: Depending on the area, there are charges associated with not keeping the minimum balance.