The central government had given relief from maintenance of ATM withdrawal charges and average minimum balance (AMB) immediately after the lockdown was announced. The duration of this relaxation of the central government ends on June 30. So far, no information has been given to pursue this exemption.
new Delhi. Finance Minister Nirmala Sitharaman made a special announcement for crores of bank account holders in the last week of March, after the announcement of lockdown for the first time in the country. On March 24, the Finance Minister told the press conference that it would not be mandatory to keep an ‘AMB-Average Minimum Balance’ in any bank savings account for three months. This came into force for April, May and June. So far, there has not been any clarity from the Finance Ministry or any bank whether this exemption will be extended further or not.
This decision of the government meant that if there is no average minimum balance in a Savings Bank Account during these three months, then the banks will not be able to charge a penalty on it. Every bank sets a minimum balance according to its own. These average amounts have to be maintained in the account every month. Failure to do so, the bank charges a penalty from the customers. However, so far no information has been revealed about extending this exemption from June.
SBI will not charge minimum balance charge
Even before the announcement of the central government, the State Bank of India had said that it is removing the obligation of average minimum balance on all savings bank accounts. The country’s largest bank issued a statement on March 11, saying, “No charge will be levied for not keeping average minimum balance on all 44.51 crore savings bank accounts of SBI.” Earlier, it was mandatory to keep minimum Rs 3,000 in SBI Savings Account in metro cities. Similarly, for semi-urban and rural areas this amount was Rs 2,000 and Rs 1,000 respectively. SBI used to charge Rs 5-15 plus tax from customers for not having minimum balance.
Relief was also provided from ATM withdrawal charge,
along with the average minimum balance, the central government also gave relief from the charge on ATM Withdrawal Charge. The Finance Minister said that debit card holders can withdraw cash from any bank’s ATM for three months. They will not have to pay any charge for this. During this time, Minister of State for Finance Anurag Singh Thakur had said that this decision has been taken so that at least number of people go to bank branches to withdraw cash.
Talking about two big banks in the private sector, HDFC Bank and ICICI Bank mandate minimum balance. If you do not do so, a fixed charge is charged from the customers. However, a three-month exemption by the government is also applicable to these banks. Let us know what are the rules of minimum balance requirement in these two banks.
What is the minimum balance rule in HDFC Bank?
If a customer has opened a savings account with HDFC Bank in metro or urban areas, then it is mandatory for them to keep at least 10,000 thousand rupees in their account every month. Similarly, in semi-urban and rural areas this limit is Rs 5000 and Rs 2,500 respectively. In the savings account of rural areas, if one does not have Rs 2,500, then it is mandatory to get a fixed deposit of at least Rs 10,000 for one day a year.
What is the rule in ICICI Bank?
This requirement is Rs 10,000 for a savings account with ICICI Bank in metro or urban areas. It is Rs 5,000 for semi-urban areas and Rs 2,000 for rural areas. In some Sudur rural areas, the minimum balance is limited to Rs 1,000. On non-maintenance of minimum balance, ICICI Bank charges Rs 100 from customers in metro, urban and semi-urban areas and 5% of the amount that is less.