Minimum Balance : If you’re one of millions who have accounts at State Bank of India, Punjab National Bank or HDFC Bank, your wallet is about to get pinched in a different way.
On the other hand, last Tuesday these banking behemoths unveiled drastic cuts in their minimum balance requirements that will leave over 60% of urban account holders and a large chunk of rural counterparties affected.
I spent some time in bank branches around Delhi last week to see how both bankers and customers are reacting to these changes.
What I found was a combination of resignation, frustration and in some cases real worry about the financial consequences for core account holders.
The Minimum Balance Rules That Are New
The new minimum balance requirement, which will apply from June 15, 2025, according to the branch and account type, sees significant differences. Here’s how things may look for account holders:
State Bank of India (SBI)
Metro & Urban Branches:
Monthly Savings: ₹5,000 (increased from ₹3,000)
Basic Savings Bank Deposit (BSBD): No minimum balance, same as now.
Salary Accounts: For active accounts there is no minimum balance (status unchanged)
Senior Citizen Accounts: ₹2,500 (increased from ₹1,500)
Semi-Urban Branches:
SIPs: ₹3,000 (increased from ₹2,000)
BSBD & Salary Accounts – No minimum balance (no change)
Senior Citizen Account: ₹1,500 (previously ₹1,000)
Rural Branches:
Regular Savings: ₹2,000 (increased from ₹1,000)
BSBD & Salary Accounts:Earlier minimum balance: nil (no change)
Senior Citizen Accounts: ₹1,000 (same as earlier)
“These changes are due to the cost of maintaining a vast branch network and monitoring the transactions, but more importantly to keep banking accessible,” said Vikram Mehta, a manager at SBI Connaught Place branch.
When I inquired about customer reactions, he conceded, “It’s been mixed. Some get it, some are very upset.”
Punjab National Bank (PNB)
Metro & Urban Branches:
Recurring Deposit: ₹4,500 (raised from ₹2,000)
(No change in the minimum balance) Basic Savings Account : Zero balance Fixed Deposit : ₹10,000 (one year) and ₹5,000 (5 years and above) Community, no-frills Account : ₹10 Medium-2 : ₹10.
Bonus Savings: ₹25,000 (₹10,000)
Senior Citizen Accounts: ₹2,000 (increased from ₹1,000)
Semi-Urban Branches:
Regular savings: ₹3,500 (raised from ₹1,500)
Basic Savings & Senior Accounts: No change in minimum balance (No minimum balance)
You Save: ₹7,500 (17%)Premium Savings At Rs. 15,000 (50%)
Rural Branches:
Monthly Savings: ₹2,500 (increased from ₹1,000)
Basic Savings & Senior Accounts: Minimum balance: NIL (no change)
Premium savings: 10,000 (5,000 received)
“The fact of the matter is that there is significant cost of operating banks especially at physical branches,” said Neha Sharma, a customer service officer at PNB’s Model Town branch. “We’ve worked to surcharge the least for our rural customers and our seniors, but we needed to make some adjustment.”
HDFC Bank
Metro & Urban Branches:
Common savings product: ₹10,000 (increased from ₹5,000)
Basic Savings Account: ₹2,500 (increased from ₹1,000)
Life and Health premium: ₹50,000 (increased from ₹25,000)
Senior Privilege Accounts: ₹5,000 (as against ₹2,500)
Semi-Urban Branches:
Normal Savings: ₹7,500 (raised from ₹3,000)
Basic Savings Account: ₹1,500 (no change)
Premium Savings: ₹25,000 (increased from ₹15,000)
Senior Privilege Accounts : ₹3,500 (increased from ₹1,500)
Rural Branches:
Savings: Regular saving (mm): ₹5,000 (up to ₹2,000)
Regular Savings Account: ₹1,000 (same as before)
Premium Savings: ₹15,000 (as against ₹10,000)
Senior Privilege Accounts: ₹2,500 (₹1,000)
“As a private bank, our cost structures are different from public sector banks,” said an HDFC representative who asked not to be named.
These enhanced minimums assist us in providing a high level of service while we further expand the branch network in underserved markets.”
Minimum Balance Penalties for Non-Compliance
And along with higher minimum balance rules, all three banks have changed penalty structures for accounts that drop below the minimum levels:
SBI
Metro/Urban: ₹15-75 per month, depending on shortfall amount
Semi-Urban : ₹10-50 per month based on shortfall amount
Village: Between ₹5 and ₹30 per month depending on shortfall amount
PNB
Metro/Urban: ₹25-100 per month, depending on the percentage of shortfall
Semi-Urban: Rs.15 – 75 p.m for the shortfall percentage of 40 paise more than 5% and 60paisa less than 5% respectively.
Rural: ₹10-50/month based on the shortfall percentage
HDFC Bank
Metro/Urban — INR150-600 per month (slab structure)
Semi-Urban: ₹100 – 450 per month (graded)
Rural: ₹75-300 per month (tiered system)
“The fines appear steep,” said Rajiv Kumar, a banking analyst with Capital Financial Services, “but they are meant to make the banks comply, not to generate revenues. In fact, banks would rather have steady deposits than fee income.”
Minimum Balance Customer Reactions
As I stood in queue at the PNB branch in Karol Bagh, other customers told me about the impending changes.
Ramesh Gupta, a 62-year-old retired government official, was frustrated: “I have had an account with PNB for 35 years. Now all of a sudden I have to double my balance or pay penalties. Only let my pension go so far.”
And 34-year-old software engineer Priya Sharma appeared more relaxed about it: “I keep most of my money in my salary account anyway which doesn’t have any minimum requirements. To me, it’s not worth it.’”
Reactions were more pointed at HDFC’s branch in South Extension. “These private banks are squeezing us more and more,” said Sanjay Mehta, a small business owner.
“They lowered the interest rates on our deposits, and now they won’t allow us to put more money somewhere and keep it idle.
Minimum Balance Options Available to Impacted Customers
Meanwhile for those struggling to meet the new minimums, banks are providing the following options:
Become a Basic Savings Accounts: All three banks have basic, no-frills accounts with no or low minimum balance requirements, but these accounts often come with transaction restrictions and fewer benefits.
SALARY ACCOUNT CONVERSION: Most would let you convert you account as a salary account if your employer has corporate relationship with them with zero Punching Requirement.
Fixed Deposit Sweep: Both HDFC and SBI offer accounts where the excess money goes to a fixed deposit and you earn interest while still keeping the required minimum balance.
Senior Citizen Transitions: Customers older than 60 can transition to a seniors only account with reduced minimum requirements.
“We’re not trying to push customers out,” said Meera Kapoor, regional manager at the SBI’s north zone office. “We are ideally positioned to assist our customers in finding the right account type that best fits their financial situation.”
Minimum Balance The Bigger Picture
These minimum balance increases come as part of a larger overhaul of Indian banking. With digital transactions surging and branch visits declining, banks are re-evaluating the economics of their physical footprint.
“It’s about striking a balance between access and sustainability,” said Dr. Amitabh Rai, a banking economist at Delhi School of Economics, when I called him to help take a step back and put the problem in perspective. “Banks cannot keep loss-making branch networks forever.
These minimum balance variations are intended to cover the cost of physical infrastructure and shift more routine transactions to digital channels.”
Celtibera Diaz, for advocacy groups and other organizations that work with immigrants, including Ivy Suriyopas, a senior staff attorney for the American Immigration Council, said the message is for customers to review their accounts, know their options and make changes no later than June 15 to avoid suffering unpleasant penalties.
Whether it’s consolidating accounts, transferring to a different account type or shopping around for another bank with looser requirements, taking steps today can avoid headaches down the road.
As Deepak Sinha, a financial adviser I spoke with, pointed out: “Banking relationships need to be refreshed from time to time, anyway. It’s a good opportunity for people to think about if their existing bank and fund type would suit them in 2025.”
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