Government and non-government banks have set a minimum balance limit for maintaining a savings account, about which we are going to explain in detail in this report. Let us know about it in detail.
To maintain a savings account, every account holder has to maintain at least some amount in his account, which is usually called Average Monthly Balance (AMB) or Minimum Balance. If your account balance is below this limit, a penalty is imposed on you by the bank. It varies according to every bank and region.
Today in our report we are going to tell you about the minimum balance of four big banks of the country, so that you become alert if your account balance comes near this limit. Let us know.
Today in our report we are going to tell you about the minimum balance of four big banks of the country, so that you become alert if your account balance comes near this limit. Let us know.
HDFC bank
Urban account holders of HDFC Bank, the largest private sector bank, are required to maintain a minimum average balance of Rs 10,000 in their savings account. Whereas for semi-urban areas and rural areas the minimum balance limit has been fixed at Rs 5,000 and Rs 2,500.
State Bank of India
State Bank of India (SBI), the country’s largest public sector bank, had abolished the minimum balance limit in March 2020. Earlier, customers in urban areas had to maintain a minimum balance of Rs 3,000, customers in semi-urban areas had to maintain a minimum balance of Rs 2,000 and customers in rural areas had to maintain a minimum balance of Rs 1,000.
Punjab National Bank
In Punjab National Bank, metro and urban area customers have to maintain an average minimum balance of Rs 2,000. At the same time, this limit has been set at Rs 1,000 for semi-urban areas and Rs 500 for rural areas.
ICICI Bank
In ICICI Bank, customers in metro and urban areas have to maintain an average minimum balance of Rs 10,000, customers in semi-urban areas have to maintain an average minimum balance of Rs 5,000 and customers in rural areas have to maintain an average minimum balance of Rs 2,000.
Why does the bank keep minimum balance limit?
The biggest reason for banks maintaining minimum balance is the cost of banking operations. If the customer does not maintain the minimum balance, the bank suffers loss.
