SBI Minimum Balance Rules, Penalty Charges For Insufficient Balance

minimum balance

State Bank of India (SBI) customers holding regular savings accounts with the lender are required to maintain a monthly average balance (MAB) to the tune of Rs. 1,000-3,000, according to bank’s corporate website- The monthly average balance, which is the average of end-of-day balances in the savings account in a month, varies depending on the location of the branch. Customers failing to meet the minimum balance, or MAB, requirements have to bear penalty charges, depending upon factors such as branch location and degree of shortfall from the required average.

Here are 5 things to know about SBI minimum balance rules:

1. SBI accounts are divided on the basis of locations into four categories of branches: metro, urban, semi-urban and rural. 

2. SBI customers holding savings accounts in lender’s metro and urban branches are required to maintain a monthly average balance (MAB) of Rs. 3,000. The banking major charges a penalty amount ranging from Rs. 10 plus GST (goods and services tax) to Rs. 15 plus GST from customers failing to comply with the MAB rules in its metro and urban branches, according to bank’s website.

Metro and urban branch (required MAB Rs. 3,000)Charges
Shortfall <= 50%Rs. 10 + GST
Shortfall > 50-75%Rs. 12 + GST
Shortfall > 75%Rs. 15 + GST

(As mentioned on

3. Customers with accounts in semi-urban areas are required to maintain an average monthly balance of Rs. 2,000. The bank charges a penalty amount ranging from Rs. 7.5 plus GST to Rs. 12 plus GST from customers failing to comply with the minimum balance or MAB rules in semi-urban branches.

Semi-urban branch (required MAB Rs. 2,000)Charges
Shortfall <= 50%Rs. 7.50 + GST
Shortfall > 50-75%Rs. 10 + GST
Shortfall > 75%Rs. 12 + GST

(As mentioned on

4. Customers who belong to rural centres require maintaining a minimum balance of Rs.1,000. SBI has set penalty charges to the tune of Rs. 5-10 plus GST for non-compliance with the monthly average balance rules in rural branches.

Rural (required MAB Rs. 1,000)Charges
Shortfall <= 50%Rs. 5 + GST
Shortfall > 50-75%Rs. 7.50 + GST
Shortfall > 75%Rs. 10 + GST

(As mentioned on

5. However, SBI also offers certain accounts where MAB rules are not applicable. These are known as zero balance savings accounts and do not require customers to maintain any particular minimum average balance. Financial Inclusion accounts including PMJDY accounts, basic savings bank deposit accounts, Phela Kadam and Pheli Udaan accounts are some of the SBI zero balance savings account.