Bank-Specific Minimum Balance Policy

• The minimum balance requirement for current accounts varies by bank.
• Private sector banks usually require a higher average monthly balance.
• Public sector banks may offer slightly lower balance thresholds.
• The amount also depends on the branch category (urban, semi-urban, rural).
• Banks set different limits based on the account type and service package.

Typical Minimum Balance Range

• For basic current accounts, the minimum balance may range from ₹5,000 to ₹25,000.
• Premium or specialized current accounts may require ₹50,000 or more.
• Some banks offer zero-balance current accounts under limited conditions.
• Traders and startups may be offered flexible options initially.
• Higher the services and privileges, higher the balance requirement.

Consequences of Non-Maintenance

• Falling below the required balance attracts penalty charges.
• Monthly fees are debited automatically based on the shortfall.
• Repeated non-compliance may lead to restrictions or service downgrades.
• Bank alerts and notifications are sent before applying penalties.
• Charges vary depending on how much the balance falls short.

Calculation Based on Average Monthly Balance

• Most banks calculate the requirement as Average Monthly Balance (AMB).
• AMB is derived by summing daily closing balances and dividing by the number of days.
• Maintaining the required average avoids penalties even with daily fluctuations.
• Tools in mobile apps help track AMB status.
• Customers can spread deposits over the month to meet the target.

Options and Flexibility

• Some banks offer lower balance requirements for startups or women-led businesses.
• Customized packages allow negotiation of balance terms based on business profile.
• Relationship managers may assist in adjusting account type to fit balance capacity.
• Banks also run promotional offers with reduced or waived balance terms.
• Choosing the right account type ensures compliance and cost savings.