The term Average Minimum Balance or AMB signifies the smallest amount you need to keep in your savings account to avoid being charged with non-maintenance fees.
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Minimum Balance Charge Of Savings Bank Account: Government banks recently made headlines for collectively charging approximately ₹8.495 crore from their customers as fees for not maintaining the minimum balance in their accounts. However, India’s largest bank, State Bank of India (SBI), stands out as it has not been charging any fee for not maintaining the minimum balance, even as other government banks continue to levy such charges on customers. Notably, Punjab National Bank (PNB) alone collected the highest penalty of ₹1,538 crore from its customers over the last five years. Unsure about how much your bank charges for not maintaining the minimum balance? We’ve broken down the charges imposed by major banks. Here are the charges imposed by SBI, HDFC, ICICI, Yes Bank and PNB:
ICICI Bank: With this banking institution, it’s mandatory for customers to keep a minimum of Rs 5000 in their accounts at all times. However, if the necessary balance isn’t sustained, the bank will charge a penalty. This includes a fine of Rs 100, plus an additional 5% of any deficit in the required minimum average balance (MAB).
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HDFC Bank: For HDFC Bank, individuals residing in metro and urban locations need to maintain a monthly balance of Rs 10,000 or keep Rs 1 lakh in a fixed deposit for a term of one year plus a day. For those in semi-urban areas, the monthly balance is lower, at Rs 5,000 or a fixed deposit of Rs 50,000 for the same deposit term. Being unable to meet these criteria would incur a penalty – it’s either 6% of the shortfall or Rs 600, the lesser of the two.
Punjab National Bank: In the countryside, you’ll be charged Rs 400 if you don’t maintain the necessary minimum balance in your account. In semi-urban locales, this fee goes up to Rs 500. And if you live in urban or metropolitan areas, the cost is even higher at Rs 600.
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Axis Bank: The Basic Savings Account doesn’t charge you anything if your balance drops below the minimum requirement. That being said, if you’re in a metropolitan or urban area, they’ll slap a fine on you anywhere between Rs 600 and Rs 50. For those in semi-urban areas, the penalty ranges from Rs 300 to Rs 50 while in rural areas, you can expect to pay anywhere between Rs 150 and Rs 75.
Banks that don’t charge any fee for not maintaining the minimum amount:
Yes Bank: The bank levied No minimum balance charges from its customers.
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State Bank of India: Ever since the year 2020 rolled around, SBI has decided to be lenient by eliminating any charges that were previously imposed on customers for not maintaining the minimum balance in their savings accounts.
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