The country’s largest private bank HDFC and ICICI have recently made a major change in the Minimum Average Balance (MAB) rule for their savings accounts. The ICICI Bank will now expect customers living in the metro and urban areas to maintain an average of Rs 50,000 in their account, while earlier this limit was just Rs 10,000. In the semi-urban areas, this amount has increased from 5,000 to Rs 25,000, and in rural areas, now Rs 10,000 will have to be kept instead of 5,000.
At the same time, HDFC Bank has also increased the minimum balance of its savings account to Rs 25,000, which was earlier Rs 10,000. If you do not have this amount in your account, then the bank can also charge you. However, this rule will apply to customers who have opened a new account after 1 August 2025. Only old rules will be applicable for old account holders.
Keeping minimum average balance is not new in India. Along with private banks, many government banks also used to run under this rule, but many public sector banks have now closed it. Let us know how much minimum balance is necessary in which bank.
These government banks are not minimum balance
State Bank of India (SBI) had abolished the rule of minimum average balance five years ago. After this, customers of SBI can keep money according to the need in their account without any hassle.
Canara Bank has removed the condition of minimum monthly balance from all its savings, salary and NRI accounts since June 2025. Earlier, if the balance was not kept, the bank used to charge a fine.
Indian Bank has also completely abolished the condition of minimum balance from 7 July 2025. The bank says that this change has been made keeping in mind the convenience of customers.
Punjab National Bank and Bank of Baroda have also given the facility of zero balance by removing minimum balance in their general savings accounts since 1 July 2025. However, it will still be necessary to keep the prescribed amount in premium accounts.
Private bank charged fine
HDFC Bank customers have to keep an average monthly balance in urban areas. If customers do not have this balance, then a penalty can be charged up to Rs 600 in urban areas and Rs 300 in other areas.
At the same time, an average monthly balance of Rs 12,000 is necessary for semi-urban areas in Axis Bank. If this balance is not complete, the bank can take a penalty of up to 6%. But according to the new rules, the maximum limit of penalty has been kept at Rs 600.
What is a minimum average balance (MAB)?
Whenever a person opens a savings account in the bank, the bank tells him that every month the account will have to be kept at least one fixed amount. This is called minimum average balance or monthly account balance. This amount varies according to bank and account. If the customer does not keep this amount in his account, then the bank can charge a penalty from it.