Non-Maintenance Charges Apply

• Yes, banks impose charges if the minimum balance in a current account is not maintained.
• These charges are typically applied monthly or quarterly.
• The fee depends on how much the balance falls short of the required amount.
• Charges vary from one bank to another and also by account type.
• Banks usually notify customers before debiting such charges.

Amount of Penalty

• For small shortfalls, charges may range from ₹200 to ₹500 per month.
• Larger shortfalls may attract higher fees, sometimes over ₹1,000 monthly.
• GST is also added to the penalty amount as per government rules.
• Some premium accounts have a grace period or waived charges.
• The exact amount is specified in the bank’s service charge guide.

Conditions Influencing the Charges

• The location of the account (urban, semi-urban, rural) may affect fee amount.
• Type of current account (basic, premium, or custom) influences the rule.
• Some banks offer tier-based penalties depending on how low the balance is.
• Account inactivity or dormancy may trigger additional reviews.
• Waivers may be available for businesses with long-term relationships.

Bank Notifications and Alerts

• Banks usually send SMS or email alerts if the balance falls below the required limit.
• Digital banking apps also display low balance warnings.
• Account statements show penalty charges under “service charges.”
• Advance knowledge helps prevent unintentional deductions.
• Customers can adjust balance before the charge cycle ends.

Ways to Avoid Penalties

• Maintain the required average monthly or quarterly balance.
• Set up alerts to monitor balance thresholds.
• Opt for account types with lower or zero minimum balance requirements.
• Talk to your relationship manager about waivers or flexible options.
• Use auto-sweep or linked savings accounts to support balance levels.