Minimum Balance: Banking rules in India are changing in 2025, and one big change is about the minimum balance requirement. Some banks are making it easier for people, while others are becoming stricter. Public sector banks like SBI and PNB are going easy on customers, but private banks like HDFC are making tougher rules.
Let’s see what these changes mean for you and how they can affect your money.
SBI Removes Minimum Balance Requirement
The State Bank of India (SBI) is the biggest government bank in India. A few years ago, SBI removed the rule for keeping a minimum balance in savings accounts. This means you can keep any amount in your account, even just one rupee, without paying a fine.
This change has helped many people. Students, small shop owners, workers, and families with irregular income no longer lose money on penalties. It shows how public banks aim to include more people in banking, not just make profits.
Benefits of Zero Balance Accounts
Zero balance accounts make banking easier for everyone. You can use your account freely without worrying about balance limits. For example, a student who gets money from home sometimes or a worker who gets weekly wages can manage their account without stress.
This move also encourages more people with low income to open bank accounts and start saving.
PNB Follows the Same Path
Punjab National Bank (PNB), another major public sector bank, has done the same. From July 2025, PNB removed the minimum balance requirement for its normal savings accounts.
But this rule does not apply to premium or special accounts. Even then, it has reduced the monthly burden for many customers. People now feel more relaxed about using their accounts.
HDFC Increases Minimum Balance
HDFC Bank, a leading private bank, has taken the opposite step. From 1 August 2025, HDFC increased its minimum balance for new accounts.
Here is the new rule:
| Area Type | Minimum Balance | Alternative Option |
| Metro & Urban | ₹25,000 | None |
| Semi-Urban | ₹5,000 | Fixed Deposit ₹50,000 |
| Rural | ₹2,500 | Fixed Deposit ₹25,000 |
This is a big increase. For many city families, keeping ₹25,000 every month in an account just to avoid fines is difficult. Many customers may now think about moving to public sector banks.
High Penalties for Low Balance in HDFC
HDFC has also added strict penalties.
- In cities, the fine can go up to ₹600 per month.
- In semi-urban and rural areas, the fine is around ₹300 per month.
These fines are charged every month if the minimum balance is not maintained. Old account holders will continue with old rules, but new customers will face these charges.
Public vs Private Banks: Two Different Ways
SBI and PNB are making banking easier for common people. Their goal is to include more people, even those with less income.
Private banks like HDFC focus more on profit and want customers who can keep high balances. This is good for their business but creates pressure on regular people.
How Will Customers Be Affected?
The effect depends on the type of customer.
- Low-income groups: SBI and PNB customers will benefit. No more monthly fines or stress.
- Middle-class families in cities: HDFC rules may be hard to follow.
- Customer choice: Many people may move from private banks to public banks.
What Should You Do?
Think carefully before opening or keeping an account. Compare different banks’ rules.
- If your income is not regular or is low, public banks like SBI and PNB may be better.
- If you have a good income and want premium services, private banks can work for you.
Always check the bank’s official website or visit a branch for the latest updates.
Final Word
In 2025, banks in India are taking different paths. Public banks like SBI and PNB are helping common people by removing the minimum balance rule. Private banks like HDFC are increasing the limit and adding higher penalties.
It is your choice to decide which bank suits your needs. Stay informed and choose wisely to avoid losing money on fines.