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From a regulatory standpoint, which is important to know, the Reserve Bank of India (RBI) allows banks to fix these charges based on their own Board Approved Policy. However, they insist that the penal charges levied must be a fixed percentage on the amount of difference between the actual balance and the minimum required balance. It's not supposed to be a random hefty fee.

The most significant thing that happens is that the penalty gets automatically deducted from your account balance. This can sometimes lead to a cycle where the deduction further reduces your balance, potentially leading to another penalty if not topped up quickly!

Also, some banks might limit or downgrade certain services if you consistently fail to maintain the balance. For instance, they might start charging for services that were previously free (like a certain number of branch transactions or cheque book issuance), or they might stop providing you with a premium debit card.

To avoid all this hassle, consider asking your bank if you are eligible to convert your account to a Basic Savings Bank Deposit Account (BSBDA), which is a zero-balance account with no minimum balance requirement. However, these accounts often come with limits on the number of transactions and other services. It's a great option for folks who don't want the minimum balance pressure!

My cousin just started as a ground staff member at a regional airport. He got placed right after his aviation management course.

His starting salary is about INR 22,000 per month. This is in a Tier-2 city, so the metro salaries might be a bit higher. What's cool is that the training was paid for, and they cover his uniform and some basic meal vouchers.

The big takeaway is that the Average Monthly Balance (AMB) requirement is an amount you need to maintain in your account over a specific period, usually a month. If your average balance for that period falls below the required minimum, the bank will levy a non-maintenance fee or a penalty charge.

• The penalty amount is usually a fixed amount plus a percentage of the shortfall in the required minimum balance. For example, if the required AMB is ₹5,000 and your average is ₹4,000 (a shortfall of ₹1,000), the fine could be a fixed fee + a percentage of that ₹1,000.
• Banks' policies differ based on your account type (e.g., salary, basic savings) and the branch location (metro, urban, semi-urban, rural). Metro branches often have the highest AMB requirement and subsequent penalties.

It’s important to check your bank's specific schedule of charges to know the exact penalties for your account, as they can differ quite a bit! You might find your bank's charges listed on a dedicated page for service fees on their official website.