He State Bank of India (SBI) dropped these charges a few years ago, resulting in Punjab National Bank collecting the highest amount of fines, totalling Rs 1,538 crore in the last five years, ToI claimed. Bank of India, Bank of Barodaand Canara Bank followed, grossing Rs 1,466 crore, Rs 1,251 crore and Rs 1,158 crore respectively, according to Times of India.
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What is the minimum balance requirement for banks?
The minimum balance may vary depending on the savings account and the free services offered. Banks provide information on the minimum balance that must be maintained, taking into account the costs associated with managing and maintaining these accounts, as well as the application of certain charges if the minimum balance is not maintained.
What is the average monthly balance?
The Average Monthly Balance (AMB) is the minimum amount of money you must keep in your savings account to avoid non-maintenance fees.
To calculate the AMB, the bank adds up the closing balances for all the days in a month and divides by the number of days in the month. If the average is less than the AMB, the bank will notify you in 2 months that you must maintain the minimum balance to avoid non-maintenance fees. This fee will be deducted directly from the funds in your Savings Account.
Here is a comparison of minimum balance charges of major banks like SBI, HDFC Bank , ICICI Bank, Yes Bank, GNP. (Source: bank websites; charges as of August 12, 2024).
State Bank of India
State Bank of India (SBI) does not charge any penalty for not maintaining the average monthly balance in savings accounts. This measure has been waived since 2020.
HDCF Bank
The average monthly balance for metro and urban requirements is Rs 10,000/-, or a fixed deposit of Rs 1 lakh for a minimum period of one year and one day. For semi-urban it is Rs 5,000/- or FD of Rs 50,000 for a minimum period of 1 year and 1 day. The charge for the above is 6% of the shortfall of the average balance requirement OR Rs 600, whichever is less.
ICICI Bank
The minimum monthly average balance (MAB) is Rs. 5000 and charges for failure to maintain minimum MAB are Rs. 100 + 5% of the shortfall in the required MAB.
GNP
The minimum balance requirement and charges for not maintaining minimum balance in the account are Rs. 400 for rural areas, Rs. 500 for semi-urban areas and Rs. 600 for urban/metropolitan areas.
Yes Bank
If the balance maintained is less than or equal to 100% of the requirement – NO charge
2. If it is more than 50% of the requirement – 5% of the balance deficit
3. If the balance is less than or equal to 50% of the requirement: 10% of the balance deficit, 5% of the balance deficit for the Savings Value
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