Almost every Indian household, be it in rural or urban areas, has at least one savings bank account. Yet, recent news shows that 11 PSU banks in India charged a total of Rs.2,331 crore in FY24 for not maintaining the minimum balance.
In most cases, the banks might not even inform you before deducting this penalty. Hence, you need to pay extra attention to ensure your savings account balance is above the minimum balance limit.
The minimum balance required varies with the bank, your debit card type, and your savings account type. In this blog, we will cover each so you can have a clear understanding of the minimum balance you need to maintain to avoid penalties.
Minimum Balance Requirement of Top Banks in India
Below are the minimum balance requirements for savings accounts offered by the top banks in India:
| Banks Name | Zero-Balance Account Availability | Minimum Balance Requirements |
| State Bank of India | All savings accounts are zero-balance accounts | N/A |
| Union Bank of India | Available | Rural: With Cheque Book – Rs.250 Without Cheque Book – Rs.100 Semi-Urban: With Cheque Book – Rs.500 Without Cheque Book – Rs.250 Urban/Metro: With Cheque Book – Rs.1,000 Without Cheque Book – Rs.500 |
| HDFC Bank | Not available | Rural: Rs.2,500 Semi-Urban: Rs.5,000 Urban/Metro: Rs.10,000 |
| ICICI Bank | Not available | Rural: Rs.1,000 (gramin branches) or Rs.2,000 (rural branches) Semi-Urban: Rs.5,000 Urban/Metro: Rs.10,000 |
| Axis Bank | Not available | Rural: Rs.2,500 Semi-Urban: Rs.5,000 Urban/Metro: Rs.12,000 |
| Bank of Baroda | Not available | Rural: Rs.500 Semi-Urban: Rs.1,000 Urban/Metro: Rs.2,000 |
| Bank of Baroda | Not available | Rural: Rs.500 Semi-Urban: Rs.1,000 Urban/Metro: Rs.2,000 |
| IDFC First Bank | Not available | Rs.10,000 or Rs.25,000, depending on choice |
| Bank of India | Not available | Rural: Rs.500 for Savings Bank Ordinary Account Rs.5,000 for BOI Star Mahila SB Account Rs.10,000 for BOI Star Senior Citizen SB Account |
| Kotak Mahindra | Available | Rural/Semi-Urban/Urban/Metro: Rs.2,500 for Sankalp Savings Account Rs.5,000 for Nova Savings Account Rs.10,000 for Edge Savings Account and Classic Savings Account Rs.20,000 for EveryDay Savings Account and Pro Savings Account Rs.50,000 for Ace Savings Account |
| RBL Bank | Available | Rural/Semi-Urban/Urban/Metro: Rs.5,000 for Digital Savings Account and Senior’s First Savings Account Rs.10,000 for Prime Edge Savings Account and Woman’s First Savings Account Rs.25,000 for Advantage Savings Account Rs.50,000 for RBL Rise Savings Account |
Minimum Balance Requirements of Different Bank Types in India
The banking sector in India is diverse, with various types of banks offering different products and services. Hence, it can be difficult to jot down the exact minimum balance requirement for each bank as they also change over time.
However, we can discuss how the minimum balance requirements vary with different bank types. Here are some of the most common types of banks and their minimum balance requirement.
1. Public Sector Banks (PSBs)
These banks are primarily controlled and managed by the Indian government. They have a vast network of branches across the country, making it convenient to access their services.
Minimum Balance: The minimum balance requirements vary depending on the specific bank and branch, but they generally tend to be lower compared to private banks.
Some PSBs may offer zero-balance savings accounts for certain customer segments.
2. Private Sector Banks
These banks are established and managed by private companies. They often offer a wider range of products and services with more competitive interest rates.
Minimum Balance: Private banks generally have higher minimum balance requirements compared to PSBs. This is due to their focus on profitability and operational costs.
However, some private banks may offer basic savings accounts with lower or no minimum balance requirements.
3. Foreign Banks
These banks are branches or subsidiaries of foreign banks operating in India. They provide access to international banking services and are beneficial for those with overseas transactions.
Minimum Balance: The minimum balance requirements for foreign banks can be similar to or higher than for private banks.
4. Regional Rural Banks (RRBs)
RRBs are primarily focused on providing banking services to rural areas. They often have lower or no minimum balance requirements to cater to the needs of rural customers. However, they also have limited product offerings compared to larger banks.
Minimum Balance: Usually these RRBs have zero balance accounts and no minimum balance requirements.
5. Cooperative Banks
These banks are established and managed by cooperative societies. Cooperative banks primarily serve local communities and have a strong regional presence.
Minimum Balance: Again, based on the specific bank and its policies, the minimum balance requirements for cooperative banks can be lower or similar to those of PSBs.
Minimum Balance Requirements Based on Debit Card Type
Till May 2025, there were over 950 million active debit cards in India, which is almost nine times more than the number of credit card users (101 million in March 2025). Yet, many of those debit card holders don’t realize that the type of card they issue also influences their minimum savings balance requirements.
Here’s how it typically works:
● Premium Debit Cards
If you have a premium debit card associated with your savings account, the minimum balance requirement might be higher. This is because premium cards often come with additional benefits and perks, which can incur costs for the bank.
To offset these costs, the bank may require a higher minimum balance. Examples of such cards include Visa Platinum, Visa Signature, Mastercard Platinum, RuPay Select, Rupay Platinum, and so on.
While these cards do come with added perks like exclusive discounts, higher daily ATM limits, and other lifestyle-focused privileges, the minimum balance requirement can be Rs.10,000 and upwards.
● Basic Debit Cards
On the other hand, if you have a basic debit card, the minimum balance requirement might be lower or even non-existent. These cards offer fewer features and benefits, so the bank may not need to impose a high minimum balance.
Some popular basic debit card types include Visa debit, Mastercard Debit, RuPay Debit, Contactless Debit, Virtual Debit card, and so on.
If you have a savings account in government banks in India (like SBI, Canara, CBI, Indian Bank, PNB, etc.), your basic card might not even influence your minimum balance requirement.
Minimum Balance Requirements of Different Savings Account Types
In addition to the type of bank, the specific type of savings account you choose can also influence the minimum balance requirement. Here are some common types of savings accounts and their associated minimum balance requirements:
● Regular Savings Accounts
These accounts are suitable for general banking needs like saving money, making transactions, and receiving interest.
The minimum balance requirement can vary widely depending on the bank. For example, a private bank like HDFC can set the minimum balance requirement to Rs.10,000 monthly, whereas for SBI, it can be only Rs.1,000 a month.
Yet overall, regular savings accounts have the lowest minimum balance requirements of all in any bank.
● Basic Savings Accounts
These are designed for low-income individuals, so naturally, the minimum balance requirements are set at a very low or nothing at all. However, the features are very limited.
Even private banks like HDFC, Axis Bank, Yes Bank, Federal Banks, and many others have zero minimum balance requirements for such accounts.
● Salary Accounts
These accounts are often offered by banks in partnership with employers. In most cases, salary accounts have zero minimum balance requirements, so you can manage your money flexibly without worrying about penalties.
● Recurring Deposit Accounts
Recurring deposit accounts require you to deposit a fixed amount each month for a specified period. You can not withdraw money from your RD account until it matures, so the concept of minimum balance requirement is not applicable here.
However, there is a minimum deposit amount requirement, and for most banks, it is Rs.100 per month.
● High-Interest Savings Accounts
These accounts offer higher interest rates compared to regular savings accounts. The minimum balance requirement for high-interest savings accounts can be higher than regular savings accounts. This is because the bank needs to maintain a certain balance to offer a higher interest rate.
While it greatly varies whether it is a public or private bank and other policy terms, you can expect it to be double or thrice the regular savings account.
Penalty Charges of Top Banks in India
Here’s what different banks charge for not maintaining a minimum balance in your regular savings account.
Here, AMB= Average monthly balance.
| Bank Name | Penalty Amount |
| SBI | Metro/ urban branches (AMB Rs. 3000): Rs. 10 to 15 + GSTSemi-urban (AMB Rs. 2000): Rs. 7.50 to 12 + GSTRural (AMB Rs. 1000): Rs. 5 to 10 + GST |
| HDFC | Metro (AMB Rs. 10,000): Rs. 150 to 600 + GSTSemi-urban (ABM Rs. 5,000): Rs. 150 to 300 + GSTRural (AMB 2,500): Rs. 270 to 450 + GST |
| ICICI | Metro (AMB Rs. 10,000): Rs. 100 + 5% of the shortfall in required AMB Semi-urban (ABM Rs. 5,000): Rs. 100 + 5% of the shortfall in required AMBRural (AMB 2,000): Rs. 100 + 5% of the shortfall in required AMB |
Conclusion
If you want to find a savings account with the lowest minimum balance requirement while still enjoying essential facilities, you can go for a basic savings account at a public sector bank (PSB).
PSBs often have a vast network of branches across India, making it convenient to access your account. At the same time, basic savings accounts are specifically designed for low-income individuals and often have lower or no minimum balance requirements.
However, if you feel like missing out on features that you may need, you can also opt for a regular savings account at a PSB. Apart from all that, explore zero-balance accounts, which both public and private banks offer.