Do you Know How Much the Required Bank Minimum Balance is in 2025?
In 2025, India’s banking minimum balance rules are shifting dramatically. While some banks like ICICI are raising the stakes with new high requirements, others are easing the burden or eliminating it. In this post, you’ll get a clear, accurate, easy-to-understand guide to what each major bank now expects. We verified all information as of early August 2025 using the latest reliable sources. Let’s explore the Bank Minimum Balance across top banks, including Axis, HDFC, ICICI, Bank of Baroda, SBI, and Indian Bank.
What is the Average Monthly Balance?
Average Monthly Balance (AMB) means the average amount of money you must keep in your bank account during the whole month. Banks check your daily closing balance, add them up for the month, and divide by the number of days. If your AMB is less than the required limit, the bank may charge a penalty.
Example: If your bank says AMB is ₹10,000, you don’t have to keep ₹10,000 every day — but your average for the month must be ₹10,000.
Top Bank Minimum Balance Requirements
Axis Bank Minimum Balance
Axis Bank offers various types of savings accounts, and the minimum balance requirement varies depending on the account you choose and the location of your branch. Here’s the breakdown:
- Basic Savings Account – ₹0
- This is a zero-balance account. You don’t have to maintain any minimum amount. Suitable for people who want no penalties for a low balance.
- Easy Access & Senior Privilege Accounts –
- Metro / Urban branches: ₹12,000 minimum monthly average balance
- Semi-Urban branches: ₹5,000
- Rural branches: ₹2,500
- Liberty Savings Account – ₹25,000 per month
- If you maintain this balance, you get benefits like cashback offers and free transactions.
- Prestige Savings Account – ₹75,000 per month (average)
- This is a premium account with higher privileges. The high minimum balance is to access exclusive perks.
- Priority Digital Savings – ₹2,00,000 (quarterly average)
- Designed for high-value customers who want premium services and higher transaction limits.
- Burgundy Digital (NRI) – ₹10,00,000 (quarterly average)
- Special account for NRIs with premium benefits like wealth management services.
HDFC Bank Minimum Balance
HDFC Bank has a simpler structure than Axis Bank, but still adjusts the minimum balance based on branch location:
- Metro / Urban branches: ₹10,000 monthly average balance
- Semi-Urban branches: ₹5,000
- Rural branches: ₹2,500
💡 If you don’t maintain the required amount, HDFC Bank charges a penalty depending on how much you fall short. Many customers opt for special schemes like salary accounts to avoid this requirement.
ICICI Bank Minimum Balance
ICICI Bank made a big change starting August 1, 2025, especially for new savings accounts:
- Urban / Metro branches: ₹50,000 monthly average balance
- This is a huge increase from the earlier ₹10,000. It’s meant to position ICICI’s savings accounts more towards premium customers.
- Rural branches: ₹10,000
🔹 Important: Existing account holders (who opened accounts before August 1, 2025) are not affected by this hike. They will continue to follow the old minimum balance rules.
Bank of Baroda Minimum Balance
- From July 1, 2025, Bank of Baroda removed its Average Monthly Balance (AMB) requirement for standard savings accounts.
- Customers no longer face penalties for low balances in regular accounts.
- This makes BoB more attractive for people who want flexibility and don’t want to worry about keeping a fixed amount in their account.
SBI Bank Minimum Balance
- SBI is one of the first major banks to completely abolish the minimum balance requirement for its regular savings accounts.
- This change happened back in 2020.
- Since then, customers enjoy true zero-balance accounts without any penalty charges.
💡 This is especially helpful for pensioners, students, and low-income account holders.
Indian Bank Minimum Balance
This move is in line with other public sector banks that are focusing on financial inclusion and customer-friendly policies.
From July 7, 2025, Indian Bank has waived minimum balance requirements for all savings accounts.
Now, customers can keep any balance, even ₹0, without paying extra charges.
All Bank Minimum Balance Requirements
| Rank | Bank Name | Minimum Balance Requirement (Savings Account) | Area/Categories Covered |
|---|---|---|---|
| 1 | ICICI Bank | ₹50,000 (Metro/Urban)* | New accounts only; ₹25,000 semi-urban; ₹10,000 rural |
| 2 | RBL Bank | Up to ₹50,000 | Depends on scheme (e.g., RBL Rise Savings) |
| 3 | Kotak Mahindra Bank | Up to ₹50,000 | Depends on the scheme (e.g., RBL Rise Savings) |
| 4 | Axis Bank | ₹12,000 (Metro/Urban) | Other schemes: ₹25,000 Liberty, ₹75,000 Prestige, ₹2 lakh Priority |
| 5 | HDFC Bank | ₹10,000 (Metro/Urban) | ₹5,000 semi-urban; ₹2,500 rural |
| 6 | ICICI Bank (Prior) | ₹10,000 (Metro/Urban) | Old rate for existing accounts before August 1, 2025 |
| 7 | Union Bank of India | Up to ₹1,000 | ₹100–₹1,000 depending on cheque book and location |
| 8 | Punjab National Bank (PNB) | Waived (AMB removed) | ₹100–₹1,000 depending on the cheque book and location |
| 9 | Bank of India (BoI) | Waived (AMB removed) | No penalties in 2025 |
| 10 | Canara Bank | Waived (AMB removed) | Effective June 1, 2025 |
| 11 | Bank of Baroda (BoB) | Waived (AMB removed) | From July 1, 2025 |
| 12 | Indian Bank | Waived (AMB removed) | Effective July 7, 2025 |
| 13 | State Bank of India (SBI) | Zero balance | Depends on the scheme (Ace Savings) |
| 14 | Union Bank of India (UBI) | Minimal (₹100–₹1,000) | Rural/urban factors apply |
What happens if the Bank Minimum Balance is not maintained?
If you do not maintain the required Average Monthly Balance (AMB), the bank will usually charge a penalty.
This penalty amount can be small or big depending on:
- How much less was your balance than the required AMB?
- The rules of your bank.
In some cases, if you keep failing to maintain AMB for many months, the bank may:
- Reduce your account benefits.
- Convert your account into a basic savings account.
- Even close your account (in rare cases).
Conclusion
In 2025, India’s banking landscape shows a clear split: several public-sector banks (SBI, Bank of Baroda, Indian Bank) now offer no-minimum-balance savings accounts, boosting customer freedom. Axis and HDFC maintain moderate requirements depending on geography. In contrast, ICICI dramatically hiked requirements for new customers, up to ₹50,000, raising accessibility concerns. Always verify with your bank for the latest rules and penalties.
FAQs
Q1: Can SBI customers maintain zero balance?
Yes—SBI has maintained zero-balance savings account since 2020.
Q2: Are penalties for minimum balance gone at public banks?
Yes—most, including Bank of Baroda and Indian Bank, have removed or waived AMB penalties.
Q3: Does the ICICI rule affect existing customers?
No—only new savings accounts opened from August 1, 2025, face higher minimum balance rules.
Disclaimer
Banks can change their minimum balance requirements at any time. Always check directly with your bank or its official website for the most current terms.
