Bank of India Minimum Balance: Charges, Rules & Account Types

Key Takeaways:
 

• Bank of India minimum balance may vary by account type and branch. 
   
• Average Quarterly Balance rules change with account type. Normal, Classic, Gold, Diamond, and Platinum accounts have different limits and benefits, such as debit cards, free cheques, and insurance covers. 
   
• Penalties depend on branch location. Rural/semi-urban branches charge ₹100 per quarter, while metro/urban branches charge ₹200 per quarter.
   
• Simple tools help track balance. Customers can use missed calls, internet banking, mobile banking, or ATMs to check their balance regularly.

BONUS: PRIVATE SECTOR EMPLOYEES WITH A BOI PRIVATE SALARY ACCOUNT ENJOY ZERO MINIMUM BALANCE AND FREE GROUP PERSONAL ACCIDENT INSURANCE, WHICH RISES WITH HIGHER BALANCES. 

Bank of India Minimum Balance is the lowest account balance customers must maintain to avoid penalties, varying by account type and branch location.

The Formula for AQB is:

AQB =  Sum of all end-of-day balances in a quarter ​/ Total number of days in the quarter 

In March 2024, Ramu had a total balance of ₹ 45,000 in his Bank of India savings account. He made the following purchases:

• ₹ 15,000 for his two children’s school uniforms
   
• ₹ 12,000 for school fees
   
• ₹ 6,000 for stationery items
   
• ₹ 3,000 for monthly petrol charges

After the above-mentioned transitions, the total balance in his account was ₹ 9,000. But on the month of April 1, he was charged ₹ 100. He enquired at the bank, and they informed him that his savings account comes under the type classic. So he should maintain at least ₹ 10,000 as the average quarterly balance (AQB).

This blog explains the Bank of India’s minimum balance.

What is Minimum Balance?

A minimum balance is a specific amount that the account holder needs to maintain for a month or in a financial quarter. Ramu’s savings account lacks ₹ 1,000, for which he gets ₹ 100 as a penalty charge.

The penalty charge differs for urban branches and rural branches. Ramu lives in Coimbatore, and his home branch comes under the category of an urban branch. His Bank of India savings account is a classic type, so he must maintain ₹ 10,000 as the average quarterly balance. 

Bank of India Minimum Balance Requirement

Ramu visits the official website of the Bank of India. There, he finds details about the maintenance of the average quarterly balance of a savings account, which differ from one type to another, just like his Classic Savings Bank Account from Bank of India.

1. Savings Bank Account: General

The Bank of India offers five types of savings accounts. Each type requires a different Average Quarterly Balance (AQB). AQB is the average amount that must stay in the account over three months. If not maintained, penalties may apply.

Average Quarterly Balance (AQB)

The table below shows the AQB required for each account type:
 

As shown, the higher the account type, the higher the balance that needs to be maintained.

Example: Ramu chose the Classic account. He must keep ₹10,000 as AQB.

Maintaining AQB ensures that Ramu enjoys account benefits and avoids extra charges.

Features of Savings Bank Account:  General

Each savings account also offers a different set of features, from debit cards to cheque leaves. The table below gives a quick look at what you can expect across account tiers:
 

From this, it’s clear that as you maintain higher balances, the benefits expand, from stronger insurance covers to better card types and unlimited cheque facilities.

Examples:

• Ramu can make a transaction of ₹45,000 instantly with his debit card.
   
• If he maintains ₹50,000 per year, his ATM card annual fee is waived.
   
• With the Classic account, he also gets ₹10,00,000 as accident insurance cover.

2. Pratham Savings Account

This account is designed for young Indians. It encourages saving habits while giving simple banking benefits. The Pratham Savings Account is made to encourage young earners and students to start saving. Its balance requirements are simpler, which makes it easy to begin a banking journey. Here is a table explaining different variants of AQB:

Average Quarterly Balance (AQB)
 

This layout shows how beginners can start with zero balance in a Normal account and progress to higher AQB requirements as they grow financially.

Example: If Ramu chooses Pratham Gold, he must keep ₹1,00,000 as AQB.

Features of Pratham Savings Account:

Features are equally important in making banking attractive to youngsters. The table below outlines what each account offers, from cards to insurance cover: 
 

This comparison makes it clear that even with a small account, customers enjoy core benefits like ATM access and cheque leaves, while higher variants unlock premium perks.

Examples:

• Ramu can use his Rupay card to make a ₹5,000 purchase instantly.
   
• If he maintains ₹50,000 in a Normal account, his card fee is waived.
   
• With a Classic account, he gets ₹10,00,000 insurance cover.
   

3. Private Salary Account

The Private Salary Account is for employees in the private sector. It offers convenient banking with flexible features. Ramu, who works in a private firm, can open this account even if he already has a savings account in the Bank of India.

Here is an Average Quarterly Balance (AQB) Table for better understanding: 
 

The table shows how employees at different salary levels can pick an account type that matches their income, without feeling pressured to maintain high balances.

Example: If Ramu selects a Classic Salary Account, he must maintain ₹10,000 as AQB.

Features of Private Salary Account

The Private Salary Account is structured to provide employees with useful benefits that enhance their day-to-day banking. Beyond basic savings functions, these accounts extend advantages such as debit card usage, cheque facilities, and fee waivers. The level of benefits increases with higher account variants, ensuring flexibility for customers at different income levels.

The table below outlines the features available under each variant:
 

This comparison shows that higher-tier accounts add significant value, particularly with unlimited cheque leaves, larger ATM waivers, and stronger transaction support.

Examples:

• With a Classic account, Ramu can purchase goods worth ₹10,000 using his Visa Classic debit card.
   
• By maintaining ₹75,000, he qualifies for an ATM card maintenance fee waiver.
   
• He may also withdraw cash ten times from BOI ATMs and five times from other ATMs at no additional cost.

These examples highlight how maintaining higher balances ensures access to broader facilities, making the Private Salary Account more rewarding over time.

How to Check the Monthly Balance?

Ramu has several convenient options to confirm his account balance each month. These methods are designed to be simple, accessible, and reliable.

1. Missed Call
   By dialling 9015135135 or 9266135135 from his registered mobile number, Ramu can receive an SMS with his account balance. The call ends automatically, ensuring the process is effortless.
    
2. Internet Banking
   To use this method, Ramu must first register on the Bank of India’s net banking portal. After creating a secure username and password (for example, Ramu_123), he can log in. Once inside, the account balance is displayed on the home screen.
    
3. Mobile Banking
   Ramu may also install the official Bank of India mobile application. After completing registration and setting a password, he can select the “Balance Enquiry” option. The application immediately displays the available balance, such as ₹7,123.75.
    
4. ATM
   Another option is to visit any ATM. By swiping his debit card and choosing the “Balance Enquiry” function, the machine displays his current balance. For instance, it might show ₹7,123.75.

These four methods ensure that customers like Ramu can track their balances with accuracy and avoid penalties for non-maintenance.

Impact of Non-Maintenance of Minimum Balance on Customer Accounts

Failure to maintain the Average Quarterly Balance (AQB) not only results in financial penalties but also gradually erodes customer privileges, including cheque facilities, insurance covers, 

The following table highlights how non-maintenance of AQB affects penalties and associated benefits:
 

From the table, it is clear that failing to meet AQB does not merely involve penalties; it impacts both financial and non-financial privileges.

Conclusion

For Bank of India customers, maintaining the required Average Quarterly Balance (AQB) is essential to avoid non-maintenance penalties and keep account benefits active. The AQB requirement varies based on branch location, ₹5,000 for rural/semi-urban branches and ₹10,000 for metro/urban branches. 

By regularly tracking account balances through BOI’s mobile or internet banking, customers can easily ensure compliance and enjoy uninterrupted banking services.

FAQs on Bank of India Minimum Balance

1. Is Average Quarterly Balance calculated on the minimum balance or the daily closing balance?

AQB is calculated using the daily closing balance of the account over the quarter, not the minimum or average of selected days.

2. Will a penalty be charged if the balance drops below the limit only for a few days?

Yes, even if the balance drops only for a few days, it can bring down the average and lead to a penalty if the AQB requirement is not met.

3. Does transferring money between my own accounts affect AQB?

Yes, if money is withdrawn from one account and not maintained, it will lower the AQB in that account, even if transferred to another account.

4. Are AQB penalties applied automatically, or will the bank inform first?

In most cases, penalties are applied automatically at the start of the next quarter; banks are not required to give advance notice.

5. Does the Average Quarterly Balance include the amount held in Fixed Deposits or just the savings account balance?

AQB is based only on the savings or current account balance; Fixed Deposits or linked investments are not included in AQB calculations.

6. Are zero-balance accounts available in Bank of India?
Yes, BOI offers specific zero-balance accounts like PMJDY accounts and certain salary accounts.

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