Minimum balance charges in India 2026 have changed across major banks like SBI, HDFC, ICICI, Axis, PNB and other public-sector banks. If you don’t maintain the required monthly average balance in your savings account, banks may deduct non-maintenance penalty charges automatically. These deductions may look small at first, but over time they can add up to thousands of rupees annually.
In this updated 2026 guide, we break down bank-wise minimum balance rules, explain how penalties are calculated, compare public and private banks, and show practical ways to avoid unnecessary charges.
Quick takeaways
- Some public-sector banks have relaxed or changed how they collect minimum balance charges in India 2026, especially for basic savings accounts. Always check your bank’s official service-charges page for confirmation.
- Private banks still commonly charge a monthly penalty for not maintaining the Monthly Average Balance (MAB); the penalty formula varies by bank and branch location.
- If you want to avoid fees: convert to a zero-balance/basic savings account, link salary credits, or maintain a small buffer above the MAB.
What is “minimum balance” (MAB / AMB)?
To understand minimum balance charges in India 2026, you first need to understand how banks calculate Monthly Average Balance (MAB) or Average Monthly/Quarterly Balance (AMB) depending on account type and location (metro / urban / semi-urban / rural). If your balance falls below the required MAB/AMB, the bank may deduct a “non-maintenance penalty” or service charge. These requirements differ by:
- Account variant (regular vs premium vs salary vs basic)
- Branch category (metro/urban vs semi-urban vs rural)
- Bank policy updates (some banks revised rules in 2025–2026)
Minimum Balance Charges in India 2026 (Bank Wise Breakdown)
Note: below are current public guidance and commonly reported penalty formulas (always confirm on your bank’s official “fees & charges” page before assuming a number).
State Bank of India (SBI)
SBI has revised its non-maintenance penalty structure multiple times in recent years, and many basic savings account variants currently show reduced or waived minimum balance requirements. on certain account types, but its public service-charges pages show waivers/changes for many basic savings accounts (and SBI’s published service-charge documents are the authoritative source). Because SBI periodically updates its service schedule, check SBI’s official “revised service charges” page for the exact current slab for your account.
HDFC Bank
HDFC lists MAB/AMB requirements and fees for each savings account variant on its fees page; private banks like HDFC typically have tiered penalties with fixed monthly charges for shortfalls and different slabs by location and account type. For exact penalty slabs, refer to HDFC’s official “fees and charges” page.
ICICI Bank
ICICI publicly states that penalties for failing to meet MAB are either a fixed amount (for many account types) or a percentage of the shortfall (commonly ₹500 or 6% of shortfall — whichever is lower — in older published guidance). Confirm the current slab for your account on ICICI’s fee schedule.
Axis Bank
Axis publishes a fee master where penalties are shown as either a percentage of the shortfall (e.g., ₹6 per ₹100 shortfall) or a fixed minimum (e.g., ₹150), depending on account type/location. These formula-style charges are common for private banks.
Punjab National Bank (PNB)
PNB, like other PSBs, varies penalties by account variant and branch category; recent government/Parliament disclosures show PSBs still collect significant sums from non-maintenance charges overall. Always check PNB’s latest schedule for exact values.
Bank of Baroda (BoB)
Bank of Baroda announced (public-facing site) that it has waived minimum-balance charges on most savings schemes w.e.f. 01.07.2025 (excluding certain premium accounts). That means many BoB customers no longer face routine non-maintenance penalties — but check your account variant to be sure.
Bank of India
Bank of India’s public pages show many ordinary savings variants with no current minimum-balance charge for basic accounts — again, verify the specific product.
Minimum balance charges in India 2026 bank comparison table
The table below compares minimum balance charges in India 2026 across major public and private banks along with simplified penalty formats for easy comparison. For the exact ₹ values and slabs for your account, always check the bank’s official fees page linked in the notes.
| Bank | Typical Minimum Balance (Metro) | Penalty Style | Example Shortfall Impact | Zero Balance Option Available? | Best For | Risk Level If Ignored |
|---|---|---|---|---|---|---|
| Axis Bank minimum balance charges | ₹10,000 | ₹6 per ₹100 shortfall OR minimum fee | If ₹2,000 shortfall → approx ₹120–₹150 + GST | Limited (mostly salary accounts) | Salaried professionals | Medium |
| HDFC Bank minimum balance charges | ₹10,000 | Slab-based monthly penalty | ₹3,000 shortfall → penalty as per slab + GST | Yes (salary accounts) | Urban account holders | Medium–High |
| Indian Bank minimum balance charges | ₹2,000–₹5,000 (varies) | Scheme-based penalty | Lower penalty compared to private banks | Yes (basic savings accounts) | Small town / rural customers | Low |
| Bank of Baroda minimum balance charges | Mostly waived (after 2025 for many schemes) | Minimal or no penalty (standard accounts) | Many customers face zero charge | Yes | Cost-conscious users | Very Low |
| SBI savings account minimum balance and charges | Varies by account type | Mostly removed for basic savings | Many accounts no longer face penalty | Yes (Jan Dhan & basic savings) | Mass banking customers | Low |
(Table shows formats — always confirm your exact product slab)
How the penalty is calculated?
Imagine your MAB requirement is ₹5,000 (metro/urban). On the last day of the month your average balance is ₹3,000 ⇒ shortfall ₹2,000.
- If the bank charges a flat penalty, you might pay e.g., ₹150 for that month.
- If the bank uses a percent of shortfall (Axis-style example at ₹6/100): penalty ≈ ₹120 (₹6 × 20) or the stated minimum (whichever applies).
- If ICICI-style rule applies (₹500 or 6% of shortfall, whichever lower), then 6% of ₹2,000 = ₹120 (so you pay ₹120).
Remember GST may be applied to service charges in some cases.
Does minimum balance affect CIBIL or credit score?
Short answer: usually no. Minimum-balance penalties are a bank service charge on your deposit account. They do not directly report to credit bureaus the way unpaid loans or credit card defaults do. However, repeated overdrafts or bounced transactions that cause loan EMI or credit card payments to fail could indirectly harm your credit profile. Always keep enough buffer to avoid knock-on effects.
However, if low balance causes EMI bounce or missed loan payments, it can indirectly affect your credit score. You can read our detailed guide on how to increase CIBIL score fast to understand practical recovery steps.
How to avoid minimum balance charges
Avoiding minimum balance charges in India 2026 is easier if you understand your account type and maintain a small buffer.
- Switch to a zero-balance/basic bank account if you qualify (e.g., Jan Dhan, basic savings, or specific ‘zero MAB’ products).
- Link your salary/pension to the account — many salary accounts have no MAB.
- Move to a digital/neo bank product offering zero MAB or minimum deposits (but check service coverage).
- Maintain a small buffer — always keep ₹500–₹1,000 above required MAB to avoid accidental shortfalls.
- Use standing instructions or auto-sweep from a linked savings/fixed deposit to maintain balance.
- Opt out of paid services (SMS packs, paper statements) that add to monthly fees.
What to do if a charge feels wrong
- Check your account’s product terms (passbook or online product page).
- Ask the bank for a breakdown (branch or call centre).
- If your complaint is not resolved by the bank, you can escalate the issue under the RBI Ombudsman Scheme available on the official Reserve Bank of India website.
Frequently Asked Questions
Is my Jan Dhan account exempt?
Yes, most Jan Dhan and basic savings accounts are zero-balance by design. Check your product terms.
Do senior citizens get relaxations?
Some banks offer concessions; product pages or branch staff can confirm eligibility.
Are MAB rules same across India?
No — they differ by branch location (metro/urban/semi-urban/rural) and account variant.
BoB waived the minimum balance charge — is that permanent?
Bank of Baroda publicly announced waivers on many savings schemes effective 01.07.2025; this reduces fees for many customers, but premium products may still have rules. Always check the bank’s service-charges page for the latest.
Understanding minimum balance charges in India 2026 can help you choose the right bank and avoid unnecessary penalties throughout the year.
This article is based on publicly available service-charge disclosures from major Indian banks and RBI regulatory guidelines applicable in 2026. Always verify the latest slab applicable to your specific savings account variant before assuming a charge.
