Mumbai, August, 2025 — HDFC Bank has announced that starting August 1, 2025, the minimum average monthly balance (MAB) requirement for new savings accounts in metro and urban branches will be ₹25,000, more than double the previous ₹10,000.
The change applies only to new accounts opened on or after this date. Existing savings account holders will continue with the current requirements — ₹10,000 for metro/urban, ₹5,000 for semi-urban, and ₹5,000 for rural branches.
What Will Change?
The revised MAB applies to all new accounts in metro and urban branches, with similar increases in other regions:
- Semi-Urban branches — ₹25,000 (up from ₹5,000)
- Rural branches — ₹10,000 (up from ₹5,000)
Salary accounts and Basic Savings Bank Deposit Accounts (BSBDA) are unaffected, as they continue to allow zero balance facilities.
Why the Hike?
While HDFC Bank hasn’t given a detailed breakdown, the move aligns with a broader trend among private banks to boost low-cost deposits and improve service offerings for high-value customers. This follows a similar move by ICICI Bank, which recently increased its MAB for new metro and urban savings accounts to ₹50,000.
Banking experts believe the change could help HDFC maintain profitability amid rising operational costs. However, it may also prompt some potential customers to look towards public sector banks, many of which have either reduced or eliminated MAB requirements entirely.
Customer Impact
For new customers in cities, the revised MAB means they will need to maintain ₹25,000 on average in their account each month to avoid charges.
Private banks typically impose penalties when the balance falls below the required limit. Though HDFC has not confirmed its penalty structure for these accounts, similar banks charge between ₹150 and ₹600 per month depending on the shortfall.
Consumer reaction has been mixed — while some view it as a reasonable move to maintain quality banking services, others see it as an added financial burden, especially for those opening accounts for regular savings rather than high-value transactions.
No Change for Existing Customers
HDFC Bank clarified that existing account holders will see no change in their current minimum balance rules. Those who opened accounts before August 1, 2025, can continue operating with the old limits.
The bank also highlighted that this change does not impact all savings accounts — many specialised or salary-linked products remain exempt from the requirement.
Broader Banking Trend
Private sector banks in India have been steadily increasing MAB requirements for urban customers, while public sector banks such as State Bank of India (SBI) and Punjab National Bank (PNB) have removed the requirement altogether to attract a wider customer base.
The divergence in policy reflects different strategies: private banks targeting premium account holders with more value-added services, and public sector banks aiming to boost financial inclusion.
Summary Table of New MAB Rules (Effective August 1, 2025):
| Account Type (New from Aug 1) | Branch Category | Old MAB | New MAB |
|---|---|---|---|
| Savings Account | Urban/Metro | ₹10,000 | ₹25,000 |
| Savings Account | Semi-Urban | ₹5,000 | ₹25,000 |
| Savings Account | Rural | ₹5,000 | ₹10,000 |
| Salary/BSBDA | All | — | Zero balance |
Source:
