The new rules are that from the 1st of April 2025 SBI, PNB, and HDFC like many other banks will review their minimum balance rules. All these changes will impact customers within urban areas, rural areas and other incorporated places. The new measures therefore apply at these banks and you don’t want to find yourself on the wrong side of the law.
SBI, PNB, HDFC banks to update minimum balance rules from April 2025. Know new limits, avoid penalties, and learn how to keep your account safe.
Alright, let’s have a closer look at what is going to happen and how one can protect their account.
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SBI (State Bank of India): Possible Change Ahead
SBI has not asked its customers to maintain minimum balance since 2020. However, there are speculative news that from the coming financial year April’ 2025 the bank might charge ₹ 1000 as a minimum balance to maintain. At the same time, the bank has not yet announced this to the public.
Tip: If you have a mechanized food plan, are on food stamps or under a government sponsored program, it might be beneficial for you to open a ‘zero balance’ account with the State Bank of India. They are particularly useful for students and other low-income earners in the sense that they do not require a lot of cash to use in order to place bets.
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HDFC Bank: Stricter Rules, Bigger Fines
Similar to almost all leading banks in India HDFC also has implemented AMMB rules.
- ₹10,000 in urban areas
- ₹5,000 in semi-urban areas
- From April 2025, this limit may increase (not confirmed yet).
If your balance is less than the required amount, the following could happen to you:
- Some of this, up to 6%, can be offset by the elector stake.
- A maximum of ₹600
Example: If your balance is ₹8,000 less, the fine could be ₹ 300.
Tip: If you have an FD of up to ₹ 1 lakh or more, then in your case, there is no need to maintain the minimum balance.
PNB (Punjab National Bank): Rules Vary by Location
Ways to meet the current quarterly average balance (QAB) requirements:
₹3,000 in urban areas
₹2,000 in semi-urban areas
₹1,000 in rural areas
There are predictions that the monthly fees for the GHMC may rise to ₹5,000 by April 2025.
If the ration is not maintained there can be fines which range from ₹ 400 to ₹ 600.
In the last five years, Pen fed has been able to recover ₹1,538 crore by way of such penalties.
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How to Avoid These Penalties
Here are few tips on how to stay safe:
You can as well visit your nearest branch or check the set rules on your bank’s website.
If introducing small changes does not help maintain the balance, or if you feel uncomfortable doing so, try switching to zero balance account.
Another important reminder would be to set an automatic transfer limit so that you do not have to worry about a minimum balance.
I would like to suggest the option of opening an FD which stands for Fixed Deposit. Some of the most common rules that are usually maintained by banks include no overdraft, no bouncing of cheques, the minimum balance rule, and the balance rule where many banks will waive off the balance rule if you have an FD.
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Why This Matters
India’s banks collected ₹8,500 crore from people for not maintaining a minimum balance in the last five years. But there is even more that would make one to be cautious.
A withdrawal policy: The RBI – the apex monetary authority of India has not come out with a clear disclosure regarding these upcoming changes. However, each change may take time and therefore it is always wise to monitor your account or directly ask the bank in case of any doubt.
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Disclaimer: This article is for informational purposes only. Please verify details on official government websites or consult experts for guidance.
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