Most of the leading banks have fixed their AMB according to the location of a customer's account in urban, metro, semi-urban and rural areas.
Banks have mandated regular saving bank account users to maintain a certain average monthly balance (AMB) in their accounts, failing which they have to bear certain penalty charges. Average Monthly Balance (AMB) is the minimum average of deposits required by the customers in their savings bank accounts. Most of the leading banks of the nation such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB) and Axis Bank have fixed their AMB according to the location of a customer's account in urban, metro, semi-urban and rural areas and charge customers for non-maintenance of these minimum average balance (MAB) in their savings accounts. (Also read: Transaction Charges On ATM-Cum-Debit Cards Levied By Top Banks)
SBI, country's largest lender, requires customers with accounts in metro and urban branches to maintain a minimum average balance of Rs 3,000 every month. Customers with accounts in semi-urban branches and rural branches are required to maintain an MAB of Rs 2,000 and Rs 1,000 respectively, according to the bank's website - sbi.co.in.
ICICI Bank requires customers with accounts in metro and urban branches to maintain a MAB of Rs 10,000. The monthly average required in semi-urban and rural locations is Rs 5,000 and Rs 2,000 respectively, according to the bank's website - icicibank.com.
However, there are certain accounts where AMB rules are not applicable. These accounts are called as zero balance savings accounts.
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