In 2026, major public sector banks in India have updated their minimum balance rules for savings accounts. Customers of State Bank of India, Punjab National Bank, and Bank of Baroda are now required to pay closer attention to how much balance they maintain each month. While minimum balance rules are not new, the updated structure is more location-based and more closely monitored through digital systems.
Location-Based Minimum Balance Requirement
One of the most important changes is that the required minimum average balance now depends on the branch location. Accounts held in metro and large urban branches usually have higher balance requirements compared to those in semi-urban or rural branches. This difference exists because operating costs are generally higher in big cities.
It is important to understand that the rule is based on your home branch, not your current city of residence. If your account was opened in a rural branch, the rural balance requirement continues to apply unless you transfer the account. If you move your account to a metro branch, the minimum balance requirement may increase.
Penalty for Not Maintaining Balance
If the required average balance is not maintained, banks may charge a penalty. The penalty is usually graded, meaning it depends on how much the account falls short. A small shortfall may attract a smaller charge, while a larger gap can result in a higher fee. Repeated shortfalls over several months can gradually reduce savings, especially for pensioners, students, or low-income customers.
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Zero Balance Account Conditions
Certain accounts are allowed to operate without a minimum balance. These include Basic Savings Bank Deposit Accounts and some salary accounts. However, eligibility conditions must continue to be met. For example, if a salary account stops receiving salary credits, it may be converted into a regular savings account. Once converted, normal minimum balance rules apply.
Digital Monitoring and Alerts
Banks have improved their mobile and internet banking systems in 2026. Customers can now check their required balance, shortfall amount, and possible penalties online. Many banks also send alerts before deducting charges, giving customers a chance to add funds. Maintaining a small buffer above the required limit can help avoid unexpected deductions.
Reviewing account details regularly, especially after relocation or job changes, can prevent unnecessary charges and protect savings.
Disclaimer: This article is for general informational purposes only and is based on publicly available guidelines as of 2026. Minimum balance requirements, penalties, and eligibility rules may vary by bank, branch type, and account category. Customers should verify details through official bank websites, customer service, or their home branch before making financial decisions. Policies may change without notice.
