Waking up to a bank alert that deducts a couple of hundred rupees from your account just because the balance fell below a certain minimum requirement is an unpleasant surprise. The minimum balance rule is that much of a bother, but in 2025, the Indian banking titans SBI, PNB, and HDFC are making it easier for the customers. While public banks are relaxing their rules, the private ones will have their rule-stick harder, and perhaps you would be better off without the penalties or might even have to think about the place where to put your cash home.
SBI’s Zero-Stress Savings Shift
The State Bank of India has always been a vocal promoter of accessibility, considering it the largest bank in the country. From 2020 onwards, SBI has been the sole holder of the no-penalty-for-not-maintenaning-minimum-average-balance (MAB) policy for regular savings accounts. This remains the case up to 2025, no matter how strong the rumors are about a possible ₹1,000 increase coming in April. Though nothing official has been said yet, experts are advising to stay alert. For beneficiaries of government schemes or students, options like Basic Savings Bank Deposit Accounts with zero-balance are more attractive. Thus, the policy keeps SBI’s doors wide open, extending a hand to the unbanked rather than saying ‘no’ because they cannot afford to keep money idle.
PNB Goes Penalty-Free for Good
In July 2025, PNB truly surprised the public when they announced that there will no longer be any minimum average balance (MAB) requirement for all savings accounts. Starting from July 1, 2025 one could have as little as one rupee in their PNB savings account and not be charged anything—this is a rather daring move which has taken inspiration from Canara Bank’s abolishing of the MAB in June. Prior to this policy change, urban customers were required to maintain quarterly average balances of ₹3,000 and could lose up to ₹600 or 6% of the shortfall through penalties. Now, PNB’s 2.50% interest is perceived as a reward, not as a trap. This repeal gives low-income families a chance to control their money flow without incurring the ₹1,538 crore in past penalties the bank collected.
HDFC’s Tiered Balance Blueprint
HDFC Bank, the top player in the private sector, goes for a more structured approach. The urban branches have a monthly average balance requirement of ₹10,000, semi-urban has ₹5,000, and rural areas have a quarterly requirement of ₹2,500. Fixed deposits can be used to counterbalance the above amount—₹1 lakh for the urban area, ₹50,000 for semi-urban, and ₹25,000 for rural areas; the deposit must be held for at least 1 year and 1 day. Penalties? A severe 6% on the deficiency, but capped at ₹600. HDFC ruled out any hikes for current accounts amid rumors in 2025 and took this clarifying step in August. It is a move that is suited for urban professionals but will be hard on casual savers as it is a premium play.
Penalty Pitfalls
It takes no time for non-compliance to catch up with you. Zero risk now with SBI and PNB? The HDFC formula is such that it scales with your mistake—if you have a ₹2,000 shortfall in the urban area, ₹120 would be deducted. Investing such fees over five years, even millions of dollars would not have been enough to cover the losses the industry would suffer but again the 2025’s leniency works wonders. Transfer automation or linking FDs to spend less is a pro tip to stay penalty-proof.
| Bank | Location | Minimum Balance | Penalty for Non-Maintenance |
|---|---|---|---|
| SBI | All | ₹0 (no MAB) | None |
| PNB | All | ₹0 (waived July 2025) | None |
| HDFC | Urban | ₹10,000 AMB or ₹1L FD | 6% of shortfall, max ₹600 |
| HDFC | Semi-Urban | ₹5,000 AMB or ₹50K FD | 6% of shortfall, max ₹600 |
| HDFC | Rural | ₹2,500 AQB or ₹25K FD | 6% of shortfall, max ₹600 |
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