Bank-Specific Minimum Balance Rules

• The minimum balance requirement varies from bank to bank.
• Private banks usually have higher minimum balance criteria.
• Public sector banks may offer more relaxed balance limits.
• Each bank sets different thresholds for urban, semi-urban, and rural branches.
• Charges apply if the balance falls below the prescribed level.

Zero Balance Account Options

• Basic Savings Bank Deposit (BSBD) accounts require no minimum balance.
• These accounts are often offered under financial inclusion schemes.
• Salary accounts typically function as zero balance accounts.
• Certain student and pension accounts are exempt from balance rules.
• Zero balance accounts come with limited transactions and services.

Variation by Account Type

• Premium and regular savings accounts have different balance needs.
• Accounts with added features may demand a higher average monthly balance.
• Senior citizen and women’s accounts may offer lower minimum limits.
• Joint or family savings plans may combine balances across members.
• Non-maintenance charges vary depending on the account category.

Penalty for Non-Maintenance

• Failure to maintain the minimum balance leads to monthly penalties.
• Charges depend on how much the balance falls short.
• Penalties are deducted directly from the account.
• Repeated non-maintenance can lead to service restrictions.
• Banks notify customers about shortfalls before applying charges.

Average Monthly Balance Concept

• Many banks calculate minimum balance based on the monthly average.
• This average is derived from daily closing balances.
• A few high-balance days can help meet the requirement.
• Customers should monitor their accounts to avoid penalties.
• Digital banking tools often show average balance status.