INSUBCONTINENT EXCLUSIVE:
Failing to comply with the monthly average balance or MAB rules - or minimum balance rules - set by the banks attracts penalty charges
applicable to the customer
Savings account holders are required to maintain a monthly average balance - which is the average of daily closing balances in a bank
account - to the tune of Rs 1,000-10,000 in PSU lender State Bank of India, and its private sector peers HDFC Bank and ICICI Bank.Failing to
comply with the required minimum balance rules attracts penalty charges in the range of Rs 5-600
The minimum balance requirement as well as the penalty charges vary depending on the location of bank branch and degree of shortfall in
account balance.Here's a comparison of the minimum average balance requirements applicable to savings bank accounts in SBI, HDFC Bank and
ICICI Bank:SBIIndividuals holding regular savings bank accounts in SBI branches located in metro and urban areas are required to maintain a
rural branches are required to maintain a minimum average balance of Rs 2,000 and Rs 1,000, respectively.Branch typeAverage monthly
Rs 10,000 for a maturity period of a minimum one year and one day, according to the bank.Branch typeAverage monthly balanceMetroRs
balanceMetroRs 10,000UrbanRs 10,000Semi-urbanRs 5,000RuralRs 2,000(Source: icicibank.com)Penalty charges for non-compliance with minimum
average balance (MAB) rulesSBISBI charges a fee ranging from Rs 5 to Rs 15 (plus applicable GST) for non-maintenance of the required monthly
The charges vary depending upon the branch location and degree of shortfall.Shortfall from required average monthly balancePenalty for
75%Rs 12Rs 12Rs 10Rs 7.5More than 75%Rs 15Rs 15Rs 12Rs 10(Source: sbi.co.in)HDFC BankHDFC Bank charges a penalty fee in the range of
