HDFC Bank says no raise in average minimum balance for saving accounts
HDFC Bank on Wednesday clarified that the bank has not raised the Average Monthly Balance (AMB) for savings accounts, denying reports suggesting that new account holders in metro or urban branches would need to maintain an average AMB of Rs 25,000.
"There has been no change in the Average Monthly Balance (AMB) requirement for any account type," the private sector lender said in a statement.
The bank said the AMB for the regular saving accounts and 'saving max accounts' continue to be Rs 10,000 and Rs 25,000, respectively.
HDFC Bank, which is the largest private sector bank in India, offers multiple variants of Savings Accounts in line with the customers’ profile, and each variant has different requirements of Average Monthly Balance based on the value-added services offered.
According to the bank, all variants are available across rural, semi-urban, urban and metro branches depending on customer profile.
"Given customer usage in metro areas, the Bank will prioritise offering the Savings Max Account to customers opening new accounts in metro branches," the bank said.
Meanwhile, private lender ICICI Bank has partially reversed its MAB requirements from Rs 50,000 to Rs 15,000 for new customers in Metro and urban areas after they faced widespread outrage.
Earlier this month, the nation's second-largest bank increased the MAB requirement for new customers in urban areas from Rs 10,000 to Rs 50,000.
The bank has also revised the minimum balance requirement for new ICICI Bank customers in semi-urban areas from Rs 25,000 to Rs 7,500.
The MAB for rural areas has been lowered from Rs 10,000, as previously advised, to Rs 2,500.
However, the bank has clarified that if customers keep a balance less than the prescribed limit in their account, then they will have to pay a penalty.
