Minimum Balance Rules: Banks charge a penalty from the customers failing to maintain the required average monthly balance in their savings accounts.


Banks today require their savings account customers to maintain a certain average monthly balance (AMB). From public sector lender State Bank of India (SBI) and Punjab National Bank (PNB) to its private sector peers HDFC Bank and ICICI Bank, most banks have fixed their own average monthly balance requirements. The requirement depends on the location of a customer’s account in urban, metro, semi-urban and rural areas. Banks also charge a penalty from the customers failing to maintain the required average monthly balance in their savings accounts.

Here’s a comparison of the average monthly balance requirement in SBI, PNB, HDFC Bank and ICICI Bank:

State Bank of India





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

Branch type Average monthly balance
Metro Rs. 3,000
Urban Rs. 3,000
Semi-urban Rs. 2,000
Rural Rs. 1,000
(Source: sbi.co.in)

Punjab National Bank

Customers having a regular savings bank account in Punjab National Bank (PNB) branches located in metro, urban, semi-urban areas are required to maintain a minimum quarterly average balance of Rs. 2,000, according to the bank’s website, pnbindia.in. Customers with savings accounts in rural branches are required to maintain a minimum balance Rs. 1,000.

Branch Type Minimum Quarterly Average Balance
Rural Rs. 1,000
Semi- Urban Rs. 2,000
Urban Rs. 2,000
Metropolitan Rs. 2,000
(Source: pnbindia.in)




HDFC Bank



Customers having 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, according to the bank’s website – hdfcbank.com. In semi-urban branches, the regular savings account holders are required to maintain an average balance of Rs. 5,000 every month. In rural branches, the customers are required to either maintain an average quarterly balance of Rs.2,500 or set up a fixed deposit of Rs. 10,000 for a maturity period of a minimum one year and one day.

Branch type Average monthly balance
Metro Rs. 10,000
Urban Rs. 10,000
Semi-urban Rs. 5,000
Rural Rs. 2,500
(Source: hdfcbank.com)

ICICI Bank


Customers having 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, according to the bank’s website, icicibank.com. The average monthly balance required in semi-urban, rural and gramin locations is Rs. 5,000, Rs. 2,000 and Rs. 1,000 respectively.

Branch type Average monthly balance
Metro Rs. 10,000
Urban Rs. 10,000
Semi-urban Rs. 5,000
Rural Rs. 2,000
Gramin Rs.1,000
(Source: icicibank.com)

Banks also offer savings accounts which do not require customers to maintain any particular minimum balance.



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