When I opened my first bank account, I was worried about the SBI Savings Account Minimum Balance – if I don’t maintain the Minimum Balance, will I be penalized? My friends told me that HDFC Saving Account Minimum Balance and ICICI Bank Saving Account Minimum Balance charges are also very high, and they had to pay a penalty.
Now I came to know that from April 1, 2025, there will be a change in the Minimum Balance Rule in some banks, and I had a lot of questions – what will be the Axis Bank Minimum Balance for Savings Account, what will be the Canara Bank, Punjab National Bank Minimum Balance, and what will be the new rules for Minimum Balance? Today I will tell you about all this in detail, so that you can understand the rules of your bank and avoid penalties. So, let’s find out!
Savings Account Minimum Balance: What’s in news?
Recently, there has been news on some social media that from April 1, 2025, there will be a change in the Minimum Balance Rule in some banks. According to some posts, the minimum balance rules in SBI, Punjab National Bank, Canara Bank, and other banks are going to change depending on the location of the account. The minimum balance amount may increase in urban areas, and due to this, the penalty may also be higher.
It is also being said that in the last 5 years, banks have collected a penalty of ₹8,500 crore for not maintaining the minimum balance. But this information has not been officially announced by the banks or the RBI yet, so we should be a little cautious. I think, until the official information comes from the banks, let us understand the current rules and plan accordingly.
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Current Minimum Balance Rule : How much in which bank?
Currently, the minimum balance rules of different banks are different. Let me tell you the rules of SBI Minimum Balance, HDFC Saving Account Minimum Balance, and other banks from some major banks:
SBI Minimum Balance
I was very happy when I came to know that SBI has stopped the penalty for Minimum Balance in SBI Savings Account from 2020. This means that even if you do not maintain any minimum balance in SBI, you will not have to pay a penalty. Moreover, SBI also has a Zero Balance Account for some special schemes, which can be used by beneficiaries of government schemes. I think this rule is very good, because it does not require people like me to take tension.
HDFC Saving Account Minimum Balance
The minimum balance rule in HDFC Bank is a bit strict. In urban areas, you have to maintain an Average Monthly Balance (AMB) of ₹10,000, and if you do not maintain this balance, you have to pay a penalty. One of my friends had to pay a penalty of ₹300 last month, because his balance had gone below ₹8,000. In semi-urban areas, this AMB is ₹5,000.
ICICI Bank Saving Account Minimum Balance
In ICICI Bank, you have to maintain a minimum Average Monthly Balance of ₹5,000. If you do not maintain this balance, you have to pay a penalty of ₹100 + 5% of the shortfall (i.e. 5% of the shortfall). My sister told me that she once had to pay a penalty of ₹150, because her balance went below ₹3,000.
Axis Bank Minimum Balance for Savings Account
Axis Bank has a minimum AMB of ₹10,000 in urban areas, and ₹5,000 in semi-urban areas. But Axis Bank has also introduced a Zero Balance Account, which benefits new customers. I think, if you are not a big spender, then a Zero Balance Account is a good option.
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Canara Bank Minimum Balance
Canara Bank has a minimum Average Monthly Balance (AMB) of ₹2,000 in urban and metro areas, ₹1,000 in semi-urban areas, and ₹500 in rural areas. If you do not maintain this balance, you have to pay a penalty of ₹25 to ₹45 (plus GST). I had a penalty of ₹30 deducted from my Canara Bank account last year because my balance had gone below ₹1,500.
Punjab National Bank Minimum Balance
Punjab National Bank requires a minimum Quarterly Average Balance (QAB). This QAB is ₹3,000 in urban areas, ₹2,000 in semi-urban areas, and ₹1,000 in rural areas. If you do not maintain this balance, you have to pay a penalty. In 2024, PNB collected a penalty of ₹633.4 crore for not maintaining the minimum balance, which is the highest.
Indian Bank Minimum Balance
The minimum AMB in Indian Bank is ₹2,000 in urban areas, and ₹500 in rural areas. Indian Bank collected a penalty of ₹369.16 crore in 2024. I think, if you live in a rural area, maintaining a minimum balance in Indian Bank is easy.
Indian Overseas Bank (IOB) Minimum Balance
The minimum Quarterly Average Balance in IOB is ₹1,000 in urban areas, and ₹500 in rural areas. IOB collected more than ₹200 crore as penalty for minimum balance in 2024.
Kotak Bank Minimum Balance
The minimum AMB in Kotak Bank is ₹10,000 in urban areas, and ₹5,000 in semi-urban areas. But Kotak has launched a Zero Balance Account called Kotak 811 Full KYC Account, which is good for new customers. I was told by a friend of mine that he opened a Kotak 811 account, and he does not have to worry about the minimum balance.
What changes may happen from April 1, 2025?
According to the news and some posts, there may be a change in the Minimum Balance Rule in some banks from April 1, 2025. The savings bank minimum balance amount may increase in urban areas, and due to this, the penalty may also increase. For example, some people said that the minimum balance in Punjab National Bank may increase from ₹1,000 to ₹5,000.
But SBI still does not have a penalty for minimum balance, so it seems that there will be no change for SBI customers. I think these changes will make customers more careful, because if the penalty increases, it can affect their pockets. But until official information comes from the banks, we should plan according to the current rules.
How much penalty for not maintaining minimum balance?
In 2024, 11 public sector banks collected a penalty of ₹2,331 crore for not maintaining minimum balance. Punjab National Bank collected the most at ₹633.4 crore, followed by Indian Bank at ₹369.16 crore, and Canara Bank at ₹1,158 crore. In the last 3 years, these banks have collected a total of ₹5,614 crore in penalties. I think, seeing this figure, we all should maintain our minimum balance properly, otherwise we may also have to pay penalties.
What to do to avoid minimum balance?
To avoid penalties due to minimum balance, I share some tips, which I found very useful:
- Choose Zero Balance Account: SBI, Kotak, and Axis Bank have the option of Zero Balance Account. I don’t have to worry about minimum balance because of my Kotak 811 account.
- Keep checking the account balance: I check my balance every week, so that it does not go below the minimum balance. You can also check the balance from your bank’s app or through SMS.
- Set up automatic transfers: If you want to maintain a minimum balance, you can set up automatic transfers from another account. My friend gave me this tip, and it helped me a lot.
- Understand the bank rules: Savings Account Minimum balance rules vary from bank to bank – some banks look at Quarterly Average Balance (QAB), while others look at Average Monthly Balance (AMB). I understood the AMB rule in Canara Bank, and I kept my balance that way.
Savings Account Minimum Balance Rule Change 2025 has made many customers like me have to be careful. I think, if you are an SBI customer, then you don’t need to worry much, because SBI is not charging a penalty for Minimum Balance yet. But if your account is in Punjab National Bank, Canara Bank, or Indian Bank, then you have to maintain a minimum balance, otherwise you will have to pay a penalty.
We have to wait for the official information from the bank to see what changes will happen from April 1, 2025. Until then, keep your balance in order, and save yourself from penalties. That’s all the information available in this regard. But I will definitely update as soon as I get more information. If you have any more questions, be sure to ask me. I will explain it to you in simple language! Now understand your bank’s rules and do smart banking!
FAQ for Savings Account Minimum Balance:
1. What is the Minimum Balance Rule Change 2025?
Rumours on X suggest that from April 1, 2025, banks like SBI, HDFC, and PNB may increase minimum balance requirements, especially in urban areas, potentially raising penalties.
2. What is the SBI Minimum Balance for savings accounts in 2025?
SBI has not charged a minimum balance penalty since 2020. However, unverified posts on X claim SBI Minimum Balance might rise from ₹0 to ₹1,000 starting April 2025.
3. What is the HDFC Saving Account Minimum Balance in 2025?
HDFC requires an AMB of ₹10,000 in urban areas and ₹5,000 in semi-urban areas. X posts hint this might increase post-April 2025, but it’s unconfirmed.
4. How much is the Punjab National Bank Minimum Balance?
PNB’s current Quarterly Average Balance is ₹3,000 in urban areas, ₹2,000 in semi-urban, and ₹1,000 in rural areas. X posts suggest it may rise to ₹5,000 from April 2025.
5. How can I avoid minimum balance penalties in 2025?
Opt for zero balance accounts like SBI’s Basic Savings or Kotak 811, regularly check your balance, set auto-transfers, and understand your bank’s AMB or QAB rules.
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