City Union Bank Minimum Balance: Complete Guide on Charges & Rules

Key Takeaways
 

• City Union Bank asks customers to maintain a minimum balance in their savings accounts.
   
• The required balance depends on the account type and the branch location.
   
• If the balance drops below the set limit, the bank may charge a penalty.

The City Union Bank minimum balance represents the mandatory threshold that account holders must sustain in their savings account to remain exempt from penal charges. The precise City Union Bank minimum balance requirement is contingent upon both the account variant and the locational classification of the branch, rural, semi-urban, or urban.

For instance, Ramesh, maintaining an account in an urban branch, is obligated to retain ₹1,000 as his stipulated balance. In one month, his account declines to ₹700, thereby attracting a penalty, which underscores to him the necessity of monitoring balances regularly to avert recurring deductions.

In this blog, we will outline the City Union Bank minimum balance framework, methods to verify compliance, and practical strategies for ensuring adherence.

City Union Bank Minimum Balance Requirement by Account Type and their maintenance charges

For General Current Accounts

The mandated minimum monthly average balance is ₹50,000. In the event the maintained average balance falls below ₹50,000 in any given month, penal charges shall be levied in accordance with the prescribed schedule indicated below.
 

Maintaining the required minimum balance in a General Current Account helps customers avoid unnecessary penalty charges. 

For Classic Plus Current Accounts

The Classic Plus account is structured for clients expected to sustain an elevated average balance while availing enhanced privileges. Non-maintenance of the stipulated threshold triggers the application of monthly maintenance levies to the account.

The prescribed minimum average balance for a Classic Plus account is ₹1,00,000/-. Should the maintained balance fall short of ₹1,00,000/-, monthly charges are imposed in accordance with the slabs detailed below,
 

Regularly monitoring the account balance ensures smooth banking and prevents penalties from affecting monthly finances.

For Other Accounts

For account categories beyond standard savings, City Union Bank prescribes differentiated minimum average balance obligations, calibrated according to the specific product type. Non-adherence to the stipulated threshold results in the imposition of a recurring monthly levy, in accordance with the bank’s prevailing schedule of charges.
 

City Union Bank’s tiered minimum balance structure ensures flexibility for different account types, from entry-level Start-Up accounts to premium Platinum accounts. Customers can avoid penalties by maintaining the required balance for their chosen account category, helping them manage banking costs effectively.

Bonus Tip: Activate balance alerts so you always know when your account is close to the City Union Bank minimum balance.

How to Check Your Monthly Average Balance in City Union Bank?

You may ascertain your City Union Bank minimum balance or Monthly Average Balance (MAB) through a range of authorised channels. The bank determines MAB by aggregating the daily closing balance across the month and dividing the total by the number of calendar days.

The following are the principal modes of verification:
 

1. Online Banking
   Access the City Union Bank internet banking interface with valid credentials. Navigate to the account summary or statement modules where MAB for current and past cycles is reflected.
    
2. Mobile Banking
   Launch the official City Union Bank mobile application. Under account information, both operative balances and MAB details are displayed.
    
3. Customer Service
   Contact the customer support centre 18602102484 or  approach a designated branch. Upon authentication, bank officials provide the MAB record.
    
4. SMS Banking
   Certain banks facilitate MAB inquiry through pre-defined SMS codes. (91-9278177444). Verify whether City Union Bank provisions this functionality.

Employing these mechanisms ensures continuous monitoring of MAB, thereby mitigating penal implications of non-maintenance of the prescribed City Union Bank minimum balance.

Bonus Tip: Maintain a little extra money above the City Union Bank minimum balance to avoid penalties due to unexpected debits.

Conclusion

City Union Bank minimum balance stipulations are determined in alignment with the specific savings account category and the branch’s locational classification rural, semi-urban, or urban. For illustration, account holders operating through rural branches are mandated to uphold a minimum of ₹500, whereas those maintaining accounts in urban centres are required to sustain ₹1,000. 

In circumstances where the operative balance descends below the prescribed threshold, the bank enforces a recurring monthly levy in accordance with its prevailing schedule of charges.

FAQ’s

Why does City Union Bank require a minimum balance?
The minimum balance helps the bank cover service costs and ensures smooth account operations.

Is the minimum balance the same for all accounts?
No, it differs based on the type of account, such as savings, current, or premium accounts.

Are penalties the same if I don’t maintain the balance?
No, the penalty amount changes depending on how much lower your balance is than the required limit.

Can I get alerts if my balance falls below the limit?
Yes, the bank sends SMS and email alerts to help customers avoid penalties.

Can I open an account without a City Union Bank minimum balance?
Yes, certain account products, including zero-balance and basic savings accounts, are specifically exempted from the minimum balance requirement.

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