Saturday, August 27, 2016

NRI Minimum Account Balance and Penalty charges - ICICI vs HDFC vs SBI vs Kotak

One of the important detail many NRIs ignore while opening NRE or NRO saving account is the minimum account balance required to be maintained on the monthly or quarterly basis. Sometimes this is also known as average monthly balance. On average you need to maintain at least 10,000 Indian Rupees as minimum monthly balance but it varies hugely from bank to bank and on different account type. Banks also charges the penalty if you don't maintain the required minimum balance in your NRE account, which not only completely offset any interest gain you have made but also put a dent on your principle amount. I have friends which have lost thousands of rupees as minimum balance penalty because of ignorance and not paying enough attention.



In this article, you will learn how much minimum balance you need to maintain for your ICICI, HDFC, SBI, or Kotak Mahindra NRI accounts. These are subject to change, so I also advise to always check respective bank website for the most updated minimum balance requirement.

Another important thing to remember is that nowadays private banks like ICICI, HDFC, and Kotak offer many different types of NRE and NRO account with different features and benefits and they have different minimum balance requirement, so it's your duty to find out exact type of your NRE/NRO account and check its minimum balance requirement.


ICICI NRI Account Minimum Balance requirement

ICICI bank offers four types of NRI saving accounts Easy NRI accounts, NRI Regular, NRI pro, and NRI Premia and following is their minimum monthly average balance requirement and charges for non-maintenance of monthly average balance:


Easy NRI account
You need to maintain minimum INR 2000 at the account level. If the minimum monthly average balance is INR 1,000 or more but below INR 2,000, charge of INR 250 per month will be levied and If It falls below INR 1,000, charge of INR 350 per month will be levied


NRI Regular
You need to keep INR 10,000 at the account level. If minimum balance is between INR 5,000 to INR 10,000 than penalty is INR 350 per month and if minimum monthly average balance falls below INR 5,000 then its INR 450 per month.


NRI Pro
INR 1,00,000 at CASA level. If the balance is between – INR 50,000 to INR 1,00,000 then the penalty is INR 50 per month. If minimum balance is between – INR 25,000 to INR 50,000 than the penalty is INR 100 per month. If the monthly balance is between – INR 10,000 to INR 25,000 than INR 200 per month. If monthly balance is between – INR 5,000 to INR 10,000 than INR 350 per month and if minimum balance is less than INR 5,000: INR 450 per month will be levied.


NRI Premia
This is one of the most premium account and hence minimum monthly average balance is quite high. You need to maintain INR 5,00,000 at CASA level. If minimum balance is between – INR 4,00,000 to INR 5,00,000 than INR 50 per month will be charged. If the monthly average balance is between – INR 3,00,000 to INR 4,00,000 than INR 100 per month will be charged. If MAB is between – INR 1,00,000 to INR 3,00,000 than INR 200 per month. If MAB between – INR 50,000 to INR 1,00,000 than INR 350 per month and if MAB – Less than INR 50,000: INR 450 per month will be levied.

See ICICI Bank NRI Services for more details and most up-to-date minimum account balance and penalty charges for NRE accounts. .



SBI NRI account minimum balance

For SBI NRE and RNO saving account the minimum average balance requirement is nill but for Personal Banking Branches in Metro / Urban centers, it's Rs. 1 lakh, for Semi-Urban and Rural centers its Rs. 50,000 and for all other branches its Rs. 1000. For SBI FCNR and RFC deposit minimum balance is 1000 in USD, GBP, EURO, CAD, JPY and AUD

NRI Minimum Account Balance and Penalty charges - ICICI vs HDFC vs SBI vs Kotak


HDFC NRI account minimum balance

For HDFC NRE and NRO savings/current account, you need to maintain a minimum balance, also known as average monthly balance (AMB) requirement, which is same as MAB of ICIC. For Metro/Urban branches it's 10,000 Indian rupees and for Semi-urban and rural branches its 5,000 rupees. In case of non-maintenance of average monthly balance on NRE/NRO savings account following charges will be levied :

1) If your account balance is in between 7500 to 10000 then 150 monthly for metro/urban branches and no charges for semi-urban/rural.

2) if your minimum monthly account balance is in between 5000 and 7500 than 300/ per month for metro/urban branches.

3) if minimum monthly balance is less than 5000 but more than 2,500 than 450 for metro/urban branches and Rs 150 for semi-urban/rural branches.

4) If average monthly balance is really poor i.e. between 0 to 2,500 than 600 per month for metro/urban branches and Rs 300 for semi-urban and rural branches.

These minimum balance penalties were for HDFC NRE and NRO Saving account. For NRE/NRO current account sees below tables




Kotak NRI account minimum balance

Kotak Mahindra bank which has also acquired ING Vysya bank last year also offer NRE, NRO, and FCNR account and they have different monthly minimum balance requirements e.g. for NRE and NRO savings account you need to maintain 10,000 INR on the monthly basis and for NRE and NRO deposit account you need to keep minum 50,000 INR. For Kotak FCNR deposit account you need to maintain the following account at minimum
USD 1000
GBP 500
EUR 1000
AUD 1000
CAD 1000
JPY 110,000


That's all about the minimum average balance requirement of NRI accounts for ICICI, HDFC, SBI and Kotak Mahindra bank. Sometime bank also waives off non-maintenance of minimum monthly average balance penalty e.g. when you remit some money or you open NRE fixed deposit of a certain amount, so don't forget to check and request with your bank.

Related NRI banking articles you may like:

2 comments:

  1. Hello
    I have 50000 inr and i am going to india in february month. What should i do with my notes. Plz help

    ReplyDelete
    Replies
    1. Hello Shikha, you can exchange them at any RBI offices in India. They will accept old notes until 31st March, depending upon which city you are going e.g. Mumbai has RBI office, Nagpur too have, see this post for more offices.

      You just need to show your passport to them that you were overseas during this period hence not able to convert/deposit the Rs 50o notes before.

      Cash upto 2.5 lakh can be easily deposited into NRO account.

      Delete

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