Overview

• The new minimum average balance applies only to savings accounts opened on or after August 1, 2025, at ₹15,000 in metro and urban branches, ₹7,500 in semi-urban and ₹2,500 in rural locations
• The penalty for falling below the revised balance remains unchanged at 6% of the shortfall or ₹500
• Exemptions from the new requirements include salary accounts, senior citizens or pensioners, basic savings bank accounts (including PMJDY) and accounts for people with special needs
• Existing accounts opened before July 31, 2025, continue under previous terms, and select high-value customers receive waivers on penalty charges
• Private peers such as HDFC Bank and Kotak Mahindra Bank maintain metro minimums at ₹10,000, while state-owned lenders like SBI, PNB and Canara Bank have waived or rationalised balance penalties, underscoring a sector split