Most commercial banks require you to maintain a Monthly Average Balance (MAB) in your savings account. Failure to do so results in a penalty fee. However, per RBI guidelines, banks are strictly prohibited from turning your account balance into a negative (-) figure by levying these charges. Your balance can hit zero, but the bank cannot claim you owe them money for non-maintenance.

Key Highlights:

• Zero-Balance Accounts: Accounts like BSBD (Basic Savings Bank Deposit) or Jan Dhan accounts are exempt from minimum balance requirements.
• Proportional Charges: The penalty is usually proportional to the amount of shortfall in the account.
• Mandatory Notification: Banks must notify customers via SMS or email when their balance drops below the threshold, giving them a grace period to restore it.