A major banking update is drawing attention across India as reports suggest that minimum balance rules may change from March 1, 2026 for customers of leading public sector banks including SBI, PNB and Bank of Baroda. With millions of savings account holders affected, even small rule changes could influence monthly banking costs.
If you hold an account in any of these banks, understanding the updated minimum balance norms is essential to avoid penalties.
What Is the Minimum Balance Requirement
Minimum balance refers to the average monthly balance a customer must maintain in their savings account.
If the balance falls below the prescribed limit, banks may charge non-maintenance penalties depending on account type and branch category.
Minimum balance requirements usually vary based on:
Metro branches
Urban branches
Semi-urban branches
Rural branches
The required amount is generally higher in metro cities and lower in rural areas.
What Is Changing from March 1, 2026
From March 1, 2026, revised norms may apply depending on official bank notifications.
Possible changes include:
Updated minimum average balance thresholds
Revised penalty structures
Exemptions for certain account categories
Special provisions for salary and pension accounts
Customers should verify directly through official bank announcements for confirmation.
Impact on SBI Account Holders
State Bank of India periodically reviews its minimum balance policies.
Certain basic savings accounts may continue to have zero balance requirements, while regular savings accounts may have prescribed monthly average balance limits.
Customers should check their specific account type to understand applicable rules.
Impact on PNB Customers
Punjab National Bank also categorizes accounts based on location and account type.
Any revision in minimum balance norms could lead to adjusted penalty charges for non-compliance.
PNB customers are advised to review updated guidelines once officially released.
Impact on Bank of Baroda Users
Bank of Baroda customers may also see changes in balance requirements or associated service charges.
Some account types, such as basic savings bank deposit accounts, may continue to enjoy zero minimum balance facility.
Understanding account category is key to avoiding penalties.
Who Is Exempt from Minimum Balance Rules
Typically, the following accounts may be exempt:
Basic savings bank deposit accounts
Jan Dhan accounts
Salary accounts under certain agreements
Senior citizen or pension accounts in some cases
However, exemption rules depend on specific account terms.
How to Avoid Penalties
To prevent penalty charges:
Maintain the required monthly average balance
Opt for zero-balance account if eligible
Monitor account regularly
Set alerts for low balance
Upgrade or switch account types if needed
Proactive account management reduces unnecessary deductions.
Why Banks Revise Minimum Balance Norms
Banks adjust minimum balance requirements based on operational costs, service expansion, and regulatory guidelines.
Such revisions aim to balance customer service with operational sustainability.
Customers should stay informed to avoid surprises.
Conclusion
The Bank Account Rules 2026 update regarding SBI, PNB and Bank of Baroda minimum balance changes from March 1 could impact millions of account holders. While zero-balance options remain for specific categories, regular savings accounts may require maintaining prescribed monthly averages.
Customers are advised to verify official notifications from their respective banks and manage balances carefully to avoid penalties.
Disclaimer: This article is for informational purposes only. Minimum balance rules and penalty structures depend on official bank notifications. Always confirm details with your bank before taking action.