Major banks in India such as State Bank of India (SBI), Punjab National Bank (PNB), and HDFC Bank have announced changes in their minimum balance rules, which will come into effect from April 1, 2025. This change will affect account holders in urban, semi-urban, and rural areas. If you are also a customer of these banks, it is important to understand the new terms and avoid penalties. Let us know these changes in detail and understand how you can keep your money safe.

Minimum Balance in SBI: What is the new rule?

State Bank of India had abolished the minimum balance requirement for its regular savings accounts from 2020, bringing relief to millions of customers. However, there are some unconfirmed reports on social media that SBI may increase the minimum balance from ₹ 0 to ₹ 1,000 from April 2025.

The bank has not yet officially confirmed this, but experts recommend that customers check their account status regularly. If you are a beneficiary of government schemes, then SBI's zero balance accounts may be a better option for you. This rule is especially beneficial for students and low-income people.

HDFC Bank: Strict rules, higher penalties

HDFC Bank already has strict minimum average monthly balance (AMB) conditions. Customers in urban areas have to maintain a balance of ₹10,000 and ₹5,000 in semi-urban areas. According to unconfirmed reports, this limit may increase after April 2025. If you do not maintain this balance, you may have to pay a penalty of 6% or a maximum of ₹600. For example, if your balance falls to ₹8,000, you may have to pay a penalty of ₹300.

Experts say that if you have a fixed deposit (FD) of ₹1 lakh, then the minimum balance condition can be waived.

PNB: Different rules in rural and urban areas

Punjab National Bank has set its minimum quarterly average balance (QAB) at ₹3,000 in urban areas, ₹2,000 in semi-urban areas, and ₹1,000 in rural areas. There is a buzz on social media that this limit may increase to ₹5,000 from April 2025. If you do not maintain this balance, a penalty of ₹400 to ₹600 may be imposed. PNB has earned ₹1,538 crore from penalties for not maintaining minimum balance in the last five years, which shows that customers need to be cautious.

Easy ways to avoid penalty

Amid these changes, you can avoid penalties by taking some smart steps.

First, check the latest rules from your bank's official website or branch. If your account is not able to maintain the minimum balance, consider switching to a zero balance account. Also, set up automated transfers so that your account always has sufficient balance. If you have excess funds, invest in fixed deposits (FDs), as many banks relax minimum balance requirements for FD holders.

Why is it important to stay updated?

In the last five years, banks have earned ₹8,500 crore from penalties for not maintaining minimum balance, which shows how important this rule is for customers. The Reserve Bank of India (RBI) has not yet issued any official statement on these changes, but experts say that the policies of banks keep changing, and customers should be cautious.

By regularly monitoring your account and contacting the bank directly, you can avoid unnecessary expenses.

PC:UPUK