Insufficient Balance In SBI Account? Find Out How Much Money You Need To Pay As Penalty

State Bank of India (SBI) requires its customers holding regulator savings bank accounts to maintain certain balance every month in order to avoid penalty charges. The country’s largest bank has put in place a set of rules, which determine the average monthly balance (AMB) required in the savings account. The amount of balance required in SBI’s regular savings account – that is the minimum balance – varies from customer to customer, depending on factors such as branch location and the degree of shortfall. Failure to maintain sufficient balance in the savings bank account attracts a penalty ranging from Rs 5 to Rs 15 (excluding GST) for the customer, according to the lender’s website –

Here are key things to know about SBI’s minimum balance requirements, as defined in its average monthly balance (AMB) rules:

Minimum balance requirements in different branch types

SBI has categorised its branches into four types of location: metro, urban, semi-urban and rural.

SBI customers holding savings accounts with the bank are required to maintain an average monthly average to the tune of Rs 1,000-3,000 to avoid any penalty charges, according to the SBI website.

Category Average monthly balance requirement
Metro Rs 3,000
Urban Rs 3,000
Semi Urban Rs 2,000
Rural Rs 1,000

That means complying with the monthly average requirement allows the SBI customer – or SBI savings account holder – to avoid the penalty charges.

Now, what are the penalty charges applicable in case the customer fails to maintain the required balance average in a month?

SBI penalty charges for insufficient balance in savings account 

SBI charges the penalty amount based on factors such as branch location and the degree of shortfall, which is the difference between the average required and the average achieved by an account holder in a month.

Shortfall Penalty for non-maintenance of AMB in urban/metro SBI branches
<=50% Rs. 10 + GST
>50%-75% Rs. 12 + GST
>75% Rs. 15 + GST

(Also read: Income tax assessments to be “completely faceless” in few years)

Shortfall Penalty for non-maintenance of AMB in semi-urban SBI branches
<=50% Rs. 7.50 + GST
>50%-75% Rs. 10.00 + GST
>75% Rs. 12.00 + GST

(Also read: Planning a holiday? How you can save with SBI Holiday Savings account)

Shortfall Penalty for non-maintenance of AMB in rural SBI branches
<=50% Rs. 5.00 + GST
>50%-75% Rs. 7.50 + GST
>75% Rs. 10.00 + GST

Meanwhile, SBI offers several types of savings accounts – such as Jan Dhan accountsbasic savings accounts, salary package accounts and small bank accounts – that do not require any particular average monthly balance. In other words, these savings account can be operated with nil balance.


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