Minimum Balance Requirements, Non-Maintenance Charges: State Bank of India (SBI) Vs ICICI Bank Vs HDFC Bank

State Bank of India has cut penalty charges for non-maintenance of average monthly balance (AMB) by up to 75 per cent. The new rates will come into effect on April 1, 2018, according to an official statement of SBI. SBI had faced massive criticism for earning a windfall of Rs 1,771.67 crore between April and November 2017, more than its second quarter profit of Rs 1,581.55 crore. However, the country's largest lender's penalty on customers for not maintaining minimum balance is much less than its private sector peers, though.

The move will eat into the fee income of SBI, which had reported first quarterly loss in 20 years, as it had to make huge provisions for bad loans.
 

Great News for #SBI Customers! Charges for non-maintenance of #AverageMonthlyBalance (AMB) in #SavingsAccounts has been substantially reduced by upto 75%. Revised charges will be effective from 1st April 2018. Learn more: https://t.co/44g7XDAQv3#Announcement#AMB#MinimumBalancepic.twitter.com/VJBjXkM7aF

— State Bank of India (@TheOfficialSBI) March 13, 2018

Here is a comparison of penalties on non-maintenance of minimum balance and minimum balance requirements of SBI, ICICI Bank and HDFC Bank:

(Also Read: Comparison Of ICICI Bank, HDFC Bank, SBI, Bank of Baroda FD Interest Rates)

SBI charges for non-maintenance of average monthly balance across various categories
 

Metro & Urban (AMB Rs. 3000/-)	Existing Charges p.m.	Proposed Charges p.m.
Shortfall   < = 50%	Rs. 30/- +GST	Rs. 10/- +GST
Shortfall   > 50 – 75%	Rs. 40/- +GST	Rs. 12/- +GST
Shortfall   > 75%	Rs. 50/- +GST	Rs. 15/- +GST
Semi-Urban (AMB Rs. 2000/-)
Shortfall    < = 50%	Rs. 20/- +GST	Rs   7.50 +GST
Shortfall    > 50 – 75%	Rs. 30/- +GST	Rs 10.00 +GST
Shortfall    > 75%	Rs. 40/- +GST	Rs.12.00+GST
Rural (AMB Rs. 1,000/-)
Shortfall    < = 50%	Rs. 20/- +GST	Rs   5.00 +GST
Shortfall    > 50 – 75%	Rs. 30/- +GST	Rs.  7.50 +GST
Shortfall    > 75%	Rs. 40/- +GST	Rs 10.00 +GST

(Also Read: SBI Interest Rates On Savings Bank Account Vs Recurring Deposit Vs Fixed Deposit)

SBI's minimum monthly balance requirement

(Also Read: Latest SBI Interest Rates On Recurring Deposits, Fixed Deposits)

SBI has not as yet lowered the monthly minimum balance requirement for metro, semi-urban and rural accounts, according to the website of SBI, sbi.co.in.
 

Metro accounts	Rs 3,000
Semi-urban accounts	Rs 2,000
Rural accounts	Rs 1,000

ICICI Bank's charges for non-maintenance of average monthly balance across various categories, according to icicibank.com

 

Charges for non maintenance of minimum monthly average balance (NMMAB)	Metro/Urban/Semi-Urban/Rural locations :
	Rs. 100 + 5% of the shortfall in required MAB
	Gramin locations : 5% of the shortfall in required MAB

ICICI Bank's minimum monthly balance requirement

 

Minimum monthly average balance (MAB)*	Metro and Urban locations - Rs.10,000
	Semi-urban locations - Rs.5,000
	Rural locations - Rs.2,000
	Gramin locations - Rs.1,000

Comments

HDFC Bank's charges for non-maintenance of average monthly balance across various categories
 

Charges applicable on Non-Maintenance of AMB for NRE/NRO Savings Account (Average Monthly Balance)	Revised AMB Structure effective 1st April, 2015
	AMB Slab	Metro/Urban	Semi Urban/Rural
	>=7,500 to < 10,000	Rs. 150/-	NA
	>=5,000 to < 7,500	Rs. 300/-	NA
	>=2,500 to < 5,000	Rs. 450/-	Rs. 150/-
	0 to < 2,500	Rs. 600/-	Rs. 300/-

HDFC Bank's minimum monthly balance requirement
 

Minimum Balance - Average Monthly Balance (AMB) Requirement	Rs 10,000 (Metro / Urban branches)
	Rs 5, 000 (Semi-Urban / Rural branches)

Last April, SBI had re-introduced the penal charges on non-maintenance of average monthly balance, after a gap of five years. Later in October, the bank had revised down the charges to some extent. (With PTI Inputs)