Does State Bank of India levy fines for not maintaining minimum balance in account? FinMin replies

The regular savings account in the State Bank of India (SBI) is not required to maintain a minimum monthly balance.

"State Bank of India (SBI) has informed that there is no requirement of maintaining minimum balance in regular savings bank account," Union Minister of State in Finance Ministry, Pankaj Chaudhary said in a written reply to a query in Lok Sabha on Monday (March 24, 2025).

The minister was replying to a query on "whether SBI has levied fine/penalty on the customers for their default in maintaining minimum balance in their account."

The minister further quoted the bank as saying that it has stopped levying any penalty on account of non-maintenance of the minimum monthly amount.

"Also, it is not levying any penalty on account of non-maintenance of minimum account balance in regular savings bank account since March 2020," he said.

SBI offers the following savings bank accounts on which maintaining a minimum balance is not mandatory:

• Basic Savings bank Deposit Account
• Basic Savings Bank Deposit Small Account
• Savings Bank Account
• Savings Account for minors
• Savings Account for minors
• Savings Plus Account

What RBI says

As per RBI, banks are required to do the following:

• Inform the customers regarding the requirement of minimum balance at the time of opening the account. Any subsequent changes should also be intimated to the account holders.

• In case of non-maintenance of minimum balance, the bank should notify the customer about the penal charges which will be applicable if the balance is not replenished within one month from the date of notice.

• It should be ensured that the savings account does not turn into a negative balance solely on account of the levy of charges for non-maintenance of minimum balance

RBI allows banks to fix penal charges and service charges, as per their Board-approved policy, while ensuring that penal charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening the account, the minister said.