3 Private Banks Beat 12 PSBs: Your MAB Fee Exposed

HDFC Bank, Axis Bank, and ICICI Bank together collect more in minimum balance penalties than all 12 public sector banks combined. Here's what that means for your savings account — and how to avoid paying a rupee.

Here's what happened: Three large private banks — HDFC, Axis, and ICICI — collectively earn more in minimum average balance (MAB) penalties than all 12 public sector banks put together.. Public sector banks like SBI, PNB, and Bank of Baroda have reduced or waived MAB charges in recent years to push financial inclusion and reduce burden on low-income account holders.. Private banks continue to charge ₹300–₹600 per quarter (plus GST) if your average monthly balance falls below ₹10,000–₹25,000, depending on branch location and account type..

What you should do: Check your savings account statement right now — search for 'non-maintenance charges' or 'MAB penalty' entries you may have missed.. Switch to a zero-balance account: SBI Basic Savings, Post Office savings, or open a Jan Dhan account if you frequently dip below the minimum balance limit.. Negotiate with your private bank branch for a salary account or premium account tier — these typically waive MAB requirements entirely and offer better benefits..

Pro tip: If your private bank account is idle or rarely used, convert it to a Basic Savings Bank Deposit Account (BSBDA) — RBI mandates banks to offer this with zero balance requirement and no MAB penalty.