AMB ranges from ₹2,000 to ₹1 lakh in cities. Penalties run ₹150 to ₹1,000. Several zero balance options can help you avoid fees.
Mumbai, August 2025: After ICICI Bank raised minimum average monthly balance thresholds from August 1, customers are rechecking the penalties for not maintaining balances in private bank savings accounts. Public sector banks like SBI and PNB have scrapped such penalties, but private banks still levy fees, with some offering zero balance products. Here is how HDFC, ICICI, Axis, Kotak, IndusInd, IDFC FIRST and Yes Bank stack up.
Why this is in focus and how banks set it
Why now: ICICI’s higher AMB has put a spotlight on non-maintenance charges just as major public sector banks waived them, widening the gap between PSU and private banks.
How it works: Private banks define AMB or AQB by branch category metro, urban, semi-urban and rural, and levy a percentage of the shortfall as a fee, often with a cap. Many let you meet the rule with a linked fixed deposit instead of cash.
What you can do: Pick a zero balance account, use family or relationship banking, or park a small FD to avoid monthly penalties.
Impact on customers and the market
Customers: Urban AMB requirements can be as high as ₹50,000 to ₹1,00,000 for premium variants. Fees for shortfalls typically range from ₹150 to ₹1,000 per cycle.
Banks: Private lenders continue to monetize low-balance accounts through fees, while offering zero balance products to stay competitive with PSUs.
Choice: Digital onboarding and product variety mean most customers can avoid penalties by selecting the right account.
Definitions: AMB is the average of end-of-day balances in a calendar month. AQB is averaged across a quarter.
Regulation: RBI allows banks to set and disclose service charges. City categories and product features determine AMB.
Trend: Several PSBs have removed non-maintenance fees. Private banks still use AMB but offer workarounds like zero balance variants and FD-linked waivers.
AMB requirements at major private banks
| Bank | Metro/Urban AMB | Semi-urban AMB | Rural AMB | Zero balance option |
|---|---|---|---|---|
| HDFC Bank | ₹10,000 or FD ₹1,00,000 for 1y1d | ₹5,000 or FD ₹50,000 for 1y1d | AQB ₹2,500 or FD ₹25,000 for 1y1d | No dedicated zero balance on core variants |
| ICICI Bank | ₹50,000 | ₹25,000 | ₹10,000 | Waivers via Select or Family Banking if criteria met |
| Axis Bank | NA | ₹10,000 or FD ₹50,000 for 12 months | ₹10,000 or FD ₹50,000 for 12 months | Some urban products show NA for AMB |
| Kotak Mahindra Bank | ₹2,000 to ₹1,00,000 by account type | Same | Same | Kotak 811 is zero balance |
| IndusInd Bank | ₹1,500 to ₹50,000 by branch | Varies | Varies | IndusInd Delite is zero balance |
| IDFC FIRST Bank | By variant ₹10,000 or ₹25,000 | Same | Same | Diamond Private has Nil AMB |
| Yes Bank | PRO Max ₹50,000; Pro Plus and Essence ₹25,000; PRO ₹10,000 | Value ₹5,000 | My First YES ₹2,500 | No dedicated zero balance on listed variants |
Non-maintenance charges at a glance
| Bank or account | Non-maintenance fee |
|---|---|
| HDFC Bank standard | 6% of shortfall or ₹600, lower applies |
| HDFC Pragati | 6% of shortfall or ₹150, lower applies |
| HDFC GIGA | 6% of shortfall or ₹600 metro or ₹300 semi-urban and rural, lower applies |
| ICICI Bank | 6% of shortfall or ₹500, lower applies. Waived for pensioners and for Select or Family Banking if criteria met |
| Axis Bank | Semi-urban ₹6 per ₹100 shortfall or ₹300, lower applies. Rural ₹6 per ₹100 shortfall or ₹150, lower applies |
| Kotak Classic | 6% shortfall, max ₹500 |
| Kotak Pro | 6% shortfall, max ₹600 |
| Kotak Edge | 6% shortfall, max ₹600 |
| Kotak Nova | 6% shortfall, max ₹250 |
| Kotak Sanman | 6% shortfall, max ₹100 |
| Kotak Platina | 6% shortfall, max ₹600 |
| IndusInd standard | 6% to 10% of shortfall, min ₹150, max ₹900 |
| IDFC FIRST variants | 6% of AMB shortfall or ₹500, lower applies |
| Yes Bank | If balance kept is over 50% of AMB, 5% of shortfall. If below 50%, 10% of shortfall. Caps by product: up to ₹1,000 on PRO Max, ₹750 on Pro Plus or Essence or PRO, ₹500 on Value or Kisan, ₹250 on My First YES |
Notes: AMB and charges vary by product and location. Always check the latest schedule of charges on your bank’s website.
How to avoid AMB penalties
Pick the right product
Prefer zero balance options like Kotak 811 or IndusInd Delite if you do not want to track AMB.
Use relationship waivers
Check family banking, salary account tags or premium programs that waive AMB.
Park a small FD
Many banks accept a linked FD to meet AMB. Confirm the amount and tenure.
Align cash flows
Time EMIs and investments after salary credits so your monthly average stays above the threshold.
Monitor monthly
Set alerts for low balance and review mid-month to top up if needed.
Avoid duplicate accounts
Close unused savings accounts that risk recurring penalties.
Ask for a one-time waiver
If charged once, request a goodwill reversal and switch to a suitable plan.
Private banks continue to enforce minimum monthly balance rules, but customers have options. If you want no minimums, choose a zero balance account. If you keep a relationship, use waivers or a small FD to meet criteria. With PSBs scrapping penalties and private banks refining products, the best move is to match your usage to the right account and avoid paying avoidable fees.
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