Private sector lender DBS Bank India has announced stricter penalties for customers who fail to maintain the required Average Monthly Balance (AMB) in their savings accounts. Starting August 1, 2025, the bank will charge a 6% penalty on the shortfall amount, with a maximum cap of ₹500.
What Is the Penalty Rule?
The new rule means that if your account balance falls below the specified AMB, you will be penalized at a rate of 6% on the deficit amount. For instance, if your required AMB is ₹10,000 and your actual balance is ₹8,500, the shortfall is ₹1,500. You will then be charged 6% of ₹1,500, which equals ₹90.
DBS Bank India, a subsidiary of Singapore-based DBS Group, has started notifying its customers through SMS alerts about these changes. The policy aims to ensure better financial discipline and compliance with the bank’s minimum balance guidelines.
Different AMB Requirements for Different Account Types
DBS Bank has set different AMB thresholds depending on the type of savings account:
- SB Others Account: ₹1,000
- Growth One Savings Account: ₹5,000
- DBS Savings Account: ₹10,000
- Growth Savings Account: ₹10,000
- Lakshmi Savings Youth Power Account: ₹100
- TASC Savings Youth Power Account: ₹10,000
The 6% penalty on shortfall will be applicable to all these account types if the average monthly balance is not maintained as per the account category.
Penalty Cap and Implementation Date
While the penalty is calculated at 6% of the shortfall, the maximum fine will not exceed ₹500 in any case. These updated rules will officially come into effect from August 1, 2025.
Bottom Line
With these changes, DBS Bank India joins other private sector banks in enforcing stricter norms for AMB compliance. Customers are advised to regularly monitor their account balances to avoid unnecessary penalties and ensure smoother banking experiences.
