The luxury of keeping a low bank balance in your savings account may not be available for long. Banks are now trying to ensure some "financial discipline" in this respect. Some banks may charge a penalty for those who fail to maintain a financial discipline in terms of minimum balance, while others will go to the extent of terminating their relationship with the customer.

The minimum balance to be maintained by customers of State Bank of India in its personal branches is RS 10,000. For fixed deposits the minimum balance is at RS 50,000. At IDBI Bank the penalty varies from RS 75-500. At the UTI bank the customer is required to maintain an average quarterly balance of RS 5,000.

According to some banks, when many value-added services are being offered to customers these days, the customer needs to reciprocate in the form of minimum balance. Banks clearly not interested in entertaining unprofitable customers.

Source: Times News Network www.timesofindia.com

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