Leading banks of the country such as State Bank of India (SBI), ICICI Bank, HDFC Bank, PNB Bank, among others, charge customers for non-maintenance of average monthly balance (AMB) in their savings accounts. Average Monthly Balance (AMB) is the minimum average of deposits required by the customers in their savings bank accounts. Customers failing to meet the AMB requirements in a month have to bear these penalty charges. However, the amount of penalty varies across banks on the basis of branch location.
Here’s a comparison of penalty charges for non-maintenance of AMB in SBI, HDFC Bank, ICICI Bank and PNB Bank:
State Bank of India (SBI):
SBI customers who have accounts in metro and urban centres are required to maintain an average monthly balance of Rs. 3,000. Customers who maintain a balance equal to or less than 50 per cent of the required monthly balance are charged Rs10 per month plus the applicable GST (Goods and Services Tax) rate.
|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|
Customers with a regular savings account in HDFC Bank branches located in metro and urban areas are required to maintain an average monthly balance of Rs. 10,000. The AMB required in semi-urban and rural locations is Rs. 5,000 and Rs. 2,500 respectively. The lender charges Rs. 150 if the amount in savings account is less than Rs. 10,000 but more than Rs. 7, 500, for metro and urban locations.
|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|
Customers with a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain an average monthly balance of Rs. 10,000.
|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|
Customers with a regular savings bank account in PNB located in metro, urban, semi-urban areas are required to maintain a minimum quarterly average balance of Rs. 2,000.
|Minimum quarterly average balance (QAB) & charges for not maintaining QAB||Area Of Branch||Minimum Quarterly. Average Balance||Incidental Charges|
|Rural||Rs.1000/-||From Rs. 25 to 250 as per location, category and deficit in QAB as per brackets in Rs.100s|
There are certain accounts where AMB rules are not applicable. These accounts are called as zero balance savings accounts.