Banks, both public and private, require their customers with regular savings accounts to maintain a certain average monthly balance. Banks levy certain penalty from the customers if the balance in their regular savings accounts dips below the mandated limit. The top three banks - State Bank of India, ICICI Bank and HDFC Bank - have demarcated the average monthly balance (AMB), or average quarterly balance (AQB) in a certain case, based on the location of the customers' branch. The cities have been divided into metro, urban, semi-urban or rural regions for this purpose.
The three banks - SBI, ICICI Bank and HDFC Bank - have also listed out the penalties that customers are required to pay over non-maintenance of minimum balance. Once again the dichotomy of metro, urban, semi-urban or rural regions has been used to decide the amount of fine that is to be levied over non-maintenance of minimum balance.
Below are the charges levied by SBI, ICICI Bank and HDFC Bank for non-maintenance of minimum balance:
State Bank of India
SBI account holders with regular savings account in metro and urban areas are required to maintain an average monthly balance of Rs 3,000. As per SBI official website sbi.co.in, customers with SBI savings account in semi-urban branches have to maintain a MAB of Rs 2,000, whereas those with savings accounts in rural SBI branches have to hold Rs 1,000 on an average during a month.
ICICI Bank asks its customers with regular savings accounts in metro and urban branches to maintain a minimum average monthly balance of Rs 10,000. The same for ICICI Bank account holders in semi-urban, rural and Gramin branches is Rs 5,000, Rs 2,000 and Rs 1,000, respectively.
Customers of HDFC Bank in metro and urban branches are required to maintain an average monthly balance of Rs 10,000. HDFC Bank customers in its semi-urban branches have to maintain an average balance of Rs 5,000 per month. For the rural branches, HDFC Bank asks its customers to maintain an average quarterly balance of Rs 2,500 or set up a fixed deposit of Rs 10,000 for a tenure of 1 year and 1 day.