6 Banks Charging MAB Penalties: Is Yours One?
HDFC Bank, Axis Bank, and Bank of Baroda top the list for collecting minimum balance penalties from customers. Here's how to check if your bank is quietly fining you — and how to stop it.
Some banks charge ₹600/month MAB penalty — that's 20 cups of chai gone, every single month.
Your savings account could silently drain every month in penalties
Key Takeaways
Check your last 6 months' bank statements for any 'non-maintenance of minimum balance' or 'MAB penalty' deductions — even ₹200–₹600 monthly adds up fast.
Switch to a zero-balance savings account at your existing bank or open a Jan Dhan account if you struggle to maintain minimum balance requirements.
Compare MAB requirements across banks — many small finance banks and payment banks offer zero-balance accounts with decent interest rates and free UPI access.
HDFC Bank, axis-bank" class="text-primary font-semibold hover:underline">Axis Bank, and Bank of Baroda top the list for collecting minimum balance penalties from customers. Here's how to check if your bank is quietly fining you — and how to stop it.
Here's what happened: HDFC Bank and Axis Bank collected the highest minimum average balance penalties among private sector banks over the last four financial years.. Bank of Baroda led public sector banks in MAB penalty collection, though most government banks have now withdrawn these charges for savings accounts.. Zero-balance accounts like Jan Dhan Yojana accounts are fully exempt from these penalties — regular savings accounts are not..
What you should do: Check your last 6 months' bank statements for any 'non-maintenance of minimum balance' or 'MAB penalty' deductions — even ₹200–₹600 monthly adds up fast.. Switch to a zero-balance savings account at your existing bank or open a Jan Dhan account if you struggle to maintain minimum balance requirements.. Compare MAB requirements across banks — many small finance banks and payment banks offer zero-balance accounts with decent interest rates and free UPI access..
If your salary account becomes dormant after a job change, it automatically converts to a regular savings account — and MAB penalties kick in immediately. Close or convert it before that happens.
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- [1]“HDFC Bank, Axis Bank collect highest penalties from customers for non-maintenance of minimum average balance; Bank of Baroda tops public sector bank list” Wealth-Economic Times · 29 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.