The country’s leading banks—State Bank of India (SBI), Punjab National Bank (PNB), and HDFC Bank—have made significant changes to their customer minimum balance and penalty policies. While SBI and PNB have eliminated the minimum balance requirement for savings accounts, HDFC Bank has retained it based on location. This change has brought relief to millions of account holders.
SBI: No Penalty Even for Zero Balance
As of March 2020, SBI has completely eliminated the minimum balance requirement and associated penalties for its regular savings accounts. Now, customers can avoid any penalties even if they maintain a zero balance in their account.
No minimum balance limit for Insta Plus, Basic Savings Bank Deposit, Savings Plus, and minors accounts.
There is no balance requirement for BSBD (Basic Savings Bank Deposit) accounts either.
A maximum balance of ₹10 lakh can be maintained in a minor account and ₹50,000 in a small account.
PNB: Penalties completely abolished from September 15, 2025
PNB has also abolished the penalty for not maintaining a minimum balance in savings accounts, effective September 15, 2025. Previously, customers had to pay a penalty of ₹400 to ₹600, but now this worry is over.
HDFC Bank: Minimum Balance Policy Still in Effect
HDFC Bank has maintained its minimum balance policy, which varies depending on branch location:
Branch Type Minimum Balance or Fixed Deposit
Urban Branches ₹10,000 or ₹1 lakh FD
Semi-Urban Branches ₹5,000 or ₹50,000 FD
Rural Branches ₹2,500 or ₹25,000 FD
If customers fail to maintain the required balance, the bank may impose a penalty of up to ₹600.
Important Advice for Customers
SBI and PNB account holders no longer have to worry about balance.
HDFC customers are required to maintain a balance based on their location.
Be sure to check the minimum balance policy of any bank before opening a new account.
Conclusion
Under the new banking regulations of 2025, SBI and PNB have provided significant relief to customers by eliminating the minimum balance requirement. Meanwhile, HDFC Bank has maintained its policy. These changes could prove beneficial for small account holders and make banking more simple and accessible.