Have you ever wondered why some banks allow zero-balance accounts, while others insist you maintain a hefty minimum average balance (MAB)? Let’s break this down with the latest updates from India’s leading banks like SBI, PNB, ICICI, and HDFC.
ICICI Bank’s Rule Change
ICICI Bank, one of India’s biggest private banks, recently stirred debate when it raised the minimum balance for new accounts in metro and urban areas to ₹50,000. The move drew strong criticism, forcing the bank to roll it back within days.
- New MAB for ICICI Bank (after rollback):
- Metro & Urban branches: ₹15,000
- Semi-urban branches: ₹7,500
- Rural branches: ₹2,500
Even after the rollback, ICICI’s balance requirements remain higher than many other banks that have completely relaxed this condition.
Public Sector Banks: SBI & PNB
Here’s some relief: public sector giants SBI and PNB no longer require customers to maintain a minimum balance.
- SBI: Minimum balance requirement was scrapped in 2020.
- PNB: Zero balance permitted across all savings accounts.
- Canara Bank: Similar relaxation, no MAB required.
This means you can operate your SBI or PNB account freely without worrying about penalties.
HDFC, Axis, and Others
While PSU banks have simplified rules, private banks like HDFC, Axis, and IDFC First still require customers to maintain a certain balance.
| Bank | Metro/Urban Requirement | Rural Requirement |
|---|---|---|
| HDFC Bank | ₹10,000 | ₹2,500 |
| ICICI Bank | ₹15,000 | ₹2,500–₹7,500 |
| Axis Bank | ₹12,000 | ₹2,500 |
| Union Bank | ₹1,000 (with cheque book) / ₹500 (without) | ₹250 / ₹100 |
| Bank of Baroda | ₹2,000 | ₹500 |
| IDFC First Bank | ₹10,000–₹25,000 | ₹10,000–₹25,000 |
Why This Matters for You
- If you’re opening a new account, always check the MAB rules of your bank.
- Not maintaining the required balance can lead to penalties and service restrictions.
- For middle-class families, public sector banks (SBI, PNB, Canara) provide more flexibility, while private banks often keep stricter conditions.
Quick Takeaways
- SBI, PNB, Canara: Zero balance allowed.
- ICICI: Metro/urban ₹15,000, rural ₹2,500–₹7,500.
- HDFC: Metro ₹10,000, rural ₹2,500.
- Axis: Metro ₹12,000, rural ₹2,500.
