Minimum Balance Rules: Here’s How Much Top Banks Charge For Non-Compliance

Minimum Balance Rules: Here’s How Much Top Banks Charge For Non-Compliance

Most of the banks in the country require customers to maintain a certain Monthly Average Balance or MAB in their savings bank accounts, failing which they have to bear certain penalty charges. Monthly Average Balance (MAB) is the sum of all the end of day (EOD) closing balance divided by the number of days in that month. Leading lenders such as State Bank of India (SBI), HDFC Bank, ICICI Bank and Kotak Mahindra Bank have fixed theirmonthly average balance requirements according to the location of a customer’s account and charge customers for non-maintenance of minimum average balance in their savings accounts.

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Given below are the AMB requirements and penalty charges levied for non-maintenance of AMB by SBI, HDFC Bank, ICICI Bank and Kotak Mahindra Bank:

State Bank of India (SBI)

Customers with a regular savings account in SBI branches located in metro and urban areas need to maintain a monthly average balance of Rs. 3,000, according to the bank’s website – sbi.co.in. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs. 2,000 and Rs. 1,000 respectively, noted SBI.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Metro and urban branch (required MAB Rs. 3,000) Charges
Shortfall <= 50% Rs. 10 + GST
Shortfall > 50-75% Rs. 12 + GST
Shortfall > 75% Rs. 15 + GST
Semi-urban branch (required MAB Rs. 2,000)
Shortfall <= 50% Rs. 7.50 + GST
Shortfall > 50-75% Rs. 10 + GST
Shortfall > 75% Rs.12 + GST
Rural (required MAB Rs. 1,000)
Shortfall <= 50% Rs. 5 + GST
Shortfall > 50-75% Rs. 7.50 + GST
Shortfall > 75% Rs. 10 + GST

 

HDFC Bank

Customers with a regular savings account in HDFC branches located in metro and urban areas need to maintain a monthly average balance of Rs. 10,000, according to the bank’s website – hdfcbank.com. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs. 5,000 and Rs. 2,500 respectively.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Description of Charges Regular Savings Account
Minimum Average Balance Requirements Metro / 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 1 year 1 day period
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

ICICI Bank

Customers with a regular savings account in ICICI 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 – icicibank.com. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs. 5,000 and Rs. 2,500 respectively.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Minimum monthly average balance (MAB)* 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 (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

 

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.

Customers failing to meet the MAB requirements have to bear the following penalty charges:

Particulars Charges
NMC (Non Maintenance Charges) If AMB <=25% of required Product AMB Rs.500
If Salary upload is not sighted for 2 consecutive months and AMB not maintained If AMB >25% <=50% of required Product AMB Rs.400
If AMB >50% <= 75% of required Product AMB Rs.300
If AMB >75% of required Product AMB but less than product AMB Rs.150

However, there are certain accounts where MAB rules are not applicable. These accounts are called as zero balance savings accounts.

Source:- ndtv
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