Important News for DBS Bank Account Holders
This news is particularly important for those with accounts at DBS Bank. The bank has issued new guidelines requiring savings account holders to maintain a minimum average monthly balance (AMB).
If you have a bank account with DBS Bank, this news is crucial. The bank has implemented a new rule that will take effect on August 1, 2025. Under this new rule, all account holders will now be required to maintain an average of 10,000 Indian Rupees in their savings accounts each month. Customers who fail to meet this requirement will be subject to a penalty. This decision from DBS Bank may be a setback for customers, especially those with smaller balances.
What is the New Rule and Why is it Necessary?
DBS, the Singaporean banking arm in India, has announced that all savings account holders will be required to maintain a minimum average monthly balance of 10,000 Indian Rupees in their accounts starting August 1, 2025. This average balance threshold is set at 10,000 Indian Rupees. This means that you must maintain an average balance of 10,000 Indian Rupees in your account throughout the month. If this balance falls below the required amount, a penalty will be charged for that month.
The bank states that this step is being taken to maintain the stability of the banking system and to simplify account monitoring. The bank hopes that this will encourage customers to be more vigilant about their financial situation and to develop a habit of maintaining account balances.
Penalty for Non-Compliance
If a customer is unable to maintain an average monthly balance of 10,000 Indian Rupees, a penalty of up to 500 Indian Rupees may be levied. According to the bank’s published guidelines, the penalty amount will be proportionate to the balance held in the account. This charge could be up to 6 percent of the balance, but it is capped based on various balance slabs.
For example, accounts requiring a minimum average balance of 1,000 Indian Rupees could incur a charge of a maximum of 50 Indian Rupees at a rate of 6 percent. Conversely, if an account has an average balance requirement of 5,000 Indian Rupees, the charge could be a maximum of 250 Indian Rupees. However, the bank has also clarified that penalties may vary depending on the account variant.
ATM Transactions – What to Expect
Withdrawing money from DBS Bank ATMs will be completely free. However, if a customer withdraws cash from an ATM outside of DBS Bank, a fee of 23 Indian Rupees per transaction will be charged after a free limit. A free limit is also set for non-financial transactions, resulting in a charge of 10.5 Indian Rupees per transaction after that limit.
The bank views this step as a way to promote digital banking and balanced transactions. Given the rapid digitization of banking services, customers can now easily check their account balances and make transactions on time.
Impact on Customers
This new rule will have the most significant impact on customers from lower-income backgrounds or those with accounts primarily used for subsidies, scholarships, or limited transactions. It may be difficult for account holders in rural and semi-urban areas to maintain an average balance of 10,000 Indian Rupees each month. This rule could be a burden for customers in these regions.
Banking sector experts believe that this step is being taken to make the bank’s retail banking business more profitable. Many other banks have already implemented similar minimum balance rules. DBS Bank’s move is being viewed as another effort in the same direction.
Suggestions for Customers
If you have an account with DBS Bank, you will need to monitor your account more closely now. You must ensure that the balance on each day of the month averages 10,000 Indian Rupees. If the balance drops significantly on any given day, you will need to add funds to the account to reach the average.
You can also check the average monthly balance status through your net banking or mobile banking app. It is also important to pay attention to emails and SMS messages sent by the bank, as these are the primary channels through which customers are informed about changes to the rules. Regularly checking the bank’s website or contacting customer care is also advisable.
What Does Banking Policy Say?
The Reserve Bank of India has granted banks the discretion to determine minimum balance requirements for their respective savings account variants. However, the RBI has also directed banks to inform customers and provide an opportunity before imposing penalties.
