Savings bank accounts in Indian banks do not permit the customer to maintain a zero balance and requires them to maintain at least a certain minimum average balance (MAB) for every month. Public sector banks like Punjab National Bank (PNB) and State Bank of India (SBI) and HDFC Bank and ICICI Bank which comes under private sector bank maintain rules to have fixed monthly average balance in their savings accounts depending upon the location of the account of the customer in urban, metro, semi-urban and rural areas. These are just some factors from many. For those customers who fail to maintain the minimum monthly average balance in the savings account associated with them have to pay a penalty to their respective bank and this penalty may vary according to some factors which include branch location.

Here’s a comparison given for the maintenance of minimum balance requirements stipulated by SBI, HDFC Bank and ICICI Bank for their customers holding savings accounts in the country:

SBI monthly average balance requirements for Savings Account:

SBI customers who have opened accounts in metro and urban centres are required to maintain a monthly average balance of Rs. 3,000; customers who have opened accounts in semi-urban areas needs to maintain an average monthly balance or AMB of Rs. 2,000, and those having account in rural centres need to maintain a minimum balance of Rs. 1,000, according to the details available on bank’s website – sbi.co.in.

HDFC Bank monthly average balance requirements for Savings Account:

HDFC Bank’s savings accounts customers who have opened accounts in metro and urban areas are required to maintain a monthly average balance of at least Rs. 10,000. HDFC Bank’s customers in semi-urban and rural branches should maintain not less than Rs. 5,000 as average monthly balance, according to the details available on bank’s website – hdfcbank.com.

ICICI Bank monthly average balance requirements for Savings Account:

ICICI Bank’s customers who have opened savings bank accounts in metro and urban locations are required to maintain an average monthly balance of at least Rs. 10,000, according to icicibank.com. ICICI Bank customers of semi-urban branches should at least maintain Rs. 5,000 as average monthly balance while those having accounts in rural locations are required to maintain Rs. 1,000 as monthly average balance, as per the details available on the bank’s website – icicibank.com.

Punjab National Bank average monthly balance requirements for Savings Account:

PNB savings accounts customers in metro, urban and semi-urban centres are required to maintain a monthly average balance of at least Rs. 2,000. For those in rural locations, PNB has put the average monthly balance requirement of at least Rs. 1,000, according to the details bank’s website – pnbindia.in.

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