To keep the savings account running, every account holder has to maintain at least some amount in his account, which is usually called Average Monthly Balance (AMB) or Minimum Balance.
Penalty is imposed on you by the bank if the account balance is below this limit. It varies from bank to bank and region to region. Today, in this news, we are going to tell about the minimum balance of four big banks of the country, so that you will be alerted when your account balance comes near this limit. Let’s know.
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. At the same time, the minimum balance limit has been fixed at Rs 5,000 and Rs 2,500 for semi-urban areas and rural areas.
State Bank Of India
The country’s largest public sector bank State Bank of India (SBI) 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 Rs 2,000 and customers in rural areas Rs 1,000.
Punjab National Bank
In Punjab National Bank, customers of metro and urban areas have to maintain an average minimum balance of Rs 2,000. At the same time, this limit has been fixed at Rs 1,000 for semi-urban areas and Rs 500 for rural areas.
ICICI Bank requires an average minimum balance of Rs 10,000 for metro and urban customers, Rs 5,000 for semi-urban customers and Rs 2,000 for rural customers.
Why does the bank keep the minimum balance limit
The biggest reason for banks to keep minimum balance is the cost of banking operations. If the customer does not maintain the minimum balance, then the bank incurs losses.