Bank Minimum Balance Penalties: Top Collectors and How to Check Your Charges
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Banks Collected ₹19,083 Crore in Minimum Balance Penalties: How to Avoid Them
M
Moneycontrol•13-03-2026, 08:59
Banks Collected ₹19,083 Crore in Minimum Balance Penalties: How to Avoid Them
•Banks collected ₹19,083 crore in minimum average balance penalties over three years up to FY2024-25.
•Zero-balance accounts, Basic Savings Bank Deposit Accounts (BSBDAs), and Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts are exempt from MAB penalties.
•Minimum balance requirements and penalties vary by bank; HDFC Bank charges up to 6% or ₹600 for shortfalls in Average Minimum Balance (AMB).
•Banks typically notify account holders via SMS or email and provide time to restore the required balance before applying penalty charges.
•Experts advise regularly tracking bank balances, setting alerts, maintaining the required average balance, or opting for a zero-balance account to avoid penalties.
