Minimum Balance Charges: How to Dispute and Get a Refund
Charged for not keeping minimum balance? Check RBI rules on notice, proportional penalties and negative balances, work out the correct charge and get a refund.
In this article
"₹590 got deducted for 'non-maintenance of AMB' and I never even got a message." If this is you, the one-line fix is: check whether your bank sent a shortfall notice and gave you a month to restore the balance, recalculate the charge from your statement, and if either fails RBI's rules, raise a written dispute asking for a reversal. Minimum balance charges are allowed, but RBI attaches clear conditions to them, and charges that skip those conditions are refundable.
This guide is about disputing a charge you have already been hit with. If you are still choosing an account, our guide on how to choose a savings account compares account types and minimum balance levels.
The RBI rules on minimum balance charges
RBI's circulars of November 2014 and July 2015 on penal charges for non-maintenance of minimum balance in savings accounts, which remain the reference as of October 2026, say:
| Rule | What it means for you |
|---|---|
| Disclosure at opening | The minimum balance and the penalty must be told to you when you open the account, and any change must be informed in advance |
| Notice of shortfall | If your balance falls below the minimum, the bank must inform you by SMS, email or letter |
| One month to restore | The bank should give you one month from the notice to restore the balance; if you do, no penalty |
| Proportional charges | Penalties should be a fixed percentage of the shortfall, or slab-based on the shortfall, not a flat amount regardless of how short you were |
| Reasonable level | Charges must be reasonable and not out of line with the average cost of providing services |
| No negative balance | The account must not go into negative balance solely because of minimum balance charges |
| Option to downgrade | You can ask to move to a Basic Savings Bank Deposit (BSBD) account, which every bank must offer and which has no minimum balance |
Two further protections:
- Inoperative accounts are exempt. Banks should not levy minimum balance penalties on accounts classified as inoperative (no customer-induced transaction for over two years). See how to reactivate a dormant account.
- BSBD and PMJDY accounts have no minimum. Basic Savings Bank Deposit accounts, including Jan Dhan accounts, have no minimum balance requirement at all.
Minimum balance levels and penalties themselves are set by each bank's board; in August 2025 the RBI Governor said these are for banks to decide. In February 2026, the government told Parliament that public sector banks had waived or rationalised these charges on regular savings accounts. Many private banks still levy them, so your bank's current schedule of charges is the document that counts.
What to do, step by step
Today
- Find the charge in your statement. It is usually labelled "MAB/AMB charges", "non-maintenance charges" or similar, often followed by a separate GST line. Our guide on how to read a bank statement shows where such debits appear.
- Download the schedule of charges from the bank's website for your account variant and note the minimum balance (monthly or quarterly average) and the penalty formula.
- Check your messages and email for a shortfall notice. Note the date of any notice and the date of the charge.
Within a week
- Recalculate the average balance for the period (method below). Banks usually compute the average of end-of-day balances over the month or quarter.
- Raise a written dispute through the app's service request section, net banking or email if any of these is true: no notice was sent; the charge was levied within a month of the notice; the charge is not proportional to the shortfall; the charge exceeds the schedule; the charge made the balance negative; or the account was inoperative.
- Ask for future protection: conversion to a BSBD or zero-balance variant if you do not need the extra features.
If it is unresolved
- Escalate to the grievance redressal officer, quoting the RBI circulars and your calculation.
- File with the RBI Ombudsman at cms.rbi.org.in if there is no satisfactory reply within 30 days. See bank not resolving your complaint.
Worked example: is the charge correct?
Your account requires an average monthly balance (AMB) of ₹10,000. The bank's schedule says the penalty is 6% of the shortfall, capped at ₹500, plus 18% GST. In a 30-day month, your balance was ₹12,000 for 20 days and ₹2,000 for 10 days.
| Step | Calculation | Result |
|---|---|---|
| Sum of daily balances | (₹12,000 × 20) + (₹2,000 × 10) | ₹2,60,000 |
| Average monthly balance | ₹2,60,000 ÷ 30 | ₹8,666.67 |
| Shortfall | ₹10,000 − ₹8,666.67 | ₹1,333.33 |
| Penalty at 6% | ₹1,333.33 × 6% | ₹80.00 |
| Cap check | ₹80 is below ₹500 | ₹80.00 |
| GST at 18% | ₹80 × 18% | ₹14.40 |
| Correct total charge | ₹80 + ₹14.40 | ₹94.40 |
If the bank debited ₹590 (a flat ₹500 plus GST), you have a strong case that the charge is not proportional to the shortfall as the schedule and RBI require. And if no shortfall notice reached you, you can ask for the whole ₹94.40 to be waived.
Notice how small the shortfall was. Keeping the extra ₹1,334 in the account for the month would have avoided the charge. If you keep spare funds elsewhere, a sweep-in facility or a small deposit linked to the account can do that automatically; our FD calculator shows what such a buffer earns.
Where to complain
| Step | Where | When to move on |
|---|---|---|
| 1 | App, net banking, email or branch: written dispute | No reply or refusal within your bank's stated timeline |
| 2 | Grievance redressal officer or principal nodal officer | No final reply within 30 days of the first complaint |
| 3 | RBI Ombudsman at cms.rbi.org.in or 14448 | Within 90 days of the bank's reply or reply deadline |
Charges levied in breach of RBI instructions are a recognised ground under the Reserve Bank – Integrated Ombudsman Scheme, 2026 (from 1 July 2026). If you are disputing several charges together, such as SMS fees, debit card fees and ATM charges, see hidden bank charges refund.
Ready-to-copy dispute message
Subject: Dispute of minimum balance charges – account [last 4 digits] – [month/quarter]
Dear Sir/Madam,
On [date], ₹[amount] (including GST) was debited from my savings account
[last 4 digits] as charges for non-maintenance of minimum balance for
[period].
[Choose what applies:]
- I did not receive any notice of shortfall by SMS, email or letter.
- The charge was levied within one month of the notice dated [date].
- My average balance for the period was ₹[amount] against a required
₹[amount]; the shortfall was ₹[amount], so the charge per your schedule
should be ₹[amount], not ₹[amount].
- The charge has resulted in a negative balance in my account.
- The account was classified as inoperative during this period.
RBI's instructions on penal charges for non-maintenance of minimum balance
(2014 and 2015) require notice, one month to restore the balance,
charges proportional to the shortfall, and no negative balance solely
due to such charges. Please reverse ₹[amount] and confirm in writing.
I also request [conversion of my account to a BSBD / zero-balance account].
[Name], [registered mobile], [account last 4 digits]
What not to do
- Do not leave old accounts idle "just in case". Close accounts you do not use, after moving mandates and linked payments.
- Do not deposit money into an account already in negative balance from charges before disputing; the bank may simply recover the charges.
- Do not ignore the bank's notice if you get one; restoring the balance within a month avoids the charge entirely.
- Do not argue the principle of charges if they are disclosed and correctly calculated; focus on notice, proportionality and calculation.
- Do not share account details with anyone offering to "get charges waived" for a fee.
Key takeaways
- Minimum balance charges are allowed only with disclosure, a shortfall notice and one month to restore the balance.
- Charges must be proportional to the shortfall, reasonable and in the bank's published schedule.
- Charges alone must not push a savings account into negative balance; inoperative and BSBD accounts should not be charged.
- Recalculate the average balance from your statement before disputing; small shortfalls should mean small charges.
- Dispute in writing, escalate to the grievance officer, and use cms.rbi.org.in after 30 days.
Frequently asked questions
Can a bank charge a penalty for not maintaining minimum balance?
Yes, if it is disclosed in the account terms and schedule of charges. But RBI rules require the bank to notify you of the shortfall, give you one month to restore the balance before charging, keep the charge proportional to the shortfall, and not let the charge alone make your balance negative.
Can minimum balance charges make my account balance negative?
No. RBI has instructed banks to ensure that a savings account does not go into negative balance solely because of minimum balance charges. If your account shows a negative balance only from such charges, ask the bank to reverse them.
How do I stop minimum balance charges permanently?
Ask the bank to convert the account to a Basic Savings Bank Deposit (BSBD) account, which has no minimum balance requirement, or move to a zero-balance account. Close accounts you no longer use instead of leaving them idle.
Are minimum balance charges levied on inoperative or dormant accounts?
No. RBI's instructions say banks should not levy penal charges for non-maintenance of minimum balance on accounts classified as inoperative.
Do all banks still charge for minimum balance?
No. The government told Parliament in February 2026 that public sector banks have waived or rationalised minimum balance charges on regular savings accounts. Many private banks still charge, so check your bank's current schedule of charges.
This article is for general education and is not personalised financial, tax or legal advice. Rates and rules are as of 21 Oct 2026; confirm current terms with your lender, AMC or a qualified adviser.
