In recent years, India’s banking sector has introduced several customer-friendly changes, with one of the most significant being the relaxation of minimum balance requirements. Leading banks have revised their policies, offering much-needed relief to account holders.
SBI Eliminates Minimum Balance Requirement
India’s largest public sector bank, State Bank of India (SBI), has removed the mandatory minimum balance requirement for most savings accounts since 2020. This means SBI customers no longer need to maintain a fixed amount in their accounts, and even a zero balance will not attract any penalty.
The decision has particularly benefited low-income families, students, women, and senior citizens, helping expand banking services to a wider population and encouraging more people to join the formal banking system.
PNB Follows with Customer-Friendly Move
Punjab National Bank (PNB) has also scrapped penalties related to minimum balance requirements, effective August 2025. The bank’s management stated that the step aims to support farmers, small traders, women entrepreneurs, and economically weaker sections by making banking more accessible.
Previously, PNB customers who failed to maintain the required balance were charged between ₹400 and ₹600 depending on their region. That burden has now been lifted.
HDFC Bank Retains Minimum Balance Policy
In contrast, private sector giant HDFC Bank continues to enforce minimum balance rules. The requirements vary by location:
- Metropolitan areas: ₹10,000
- Semi-urban areas: ₹5,000
- Rural areas: ₹2,500
Customers who fail to meet these thresholds face a penalty of up to ₹600 or 6% of the shortfall amount (whichever is lower). HDFC Bank’s savings accounts currently offer an annual interest rate of around 3%, calculated on a daily balance and credited quarterly.