Kotak Mahindra Bank Minimum Balance – Account Types & Charges Explained

Ramesh, a college student in Pune, had opened a Nova Savings Account with Kotak Mahindra Bank last year. For a few months, he was able to keep ₹5,000 every month, as required. But then he got busy with exams and forgot to deposit money on time. One day, he checked his balance and saw a deduction of ₹300. He had no idea why it happened. Later, he found out it was because his balance had dropped below the minimum for that month. "Picture abhi baaki hai mere dost," he said to himself, as he began learning about minimum balance rules the hard way.

This is a very common issue faced by many account holders. Banks in India, including Kotak Mahindra Bank, expect a certain average balance to be maintained. If this balance is not kept, a penalty may be charged. So, let us understand this topic step-by-step in simple words.

Kotak Mahindra Bank Minimum Balance Overview

Minimum balance rules in banks are set to keep accounts active and well-maintained. Kotak Mahindra Bank offers different types of savings accounts, and each one has its own balance rule.

As per Kotak Mahindra Bank's recent policies, these balance rules have remained unchanged through early 2025. Over 3 crore customers currently hold savings accounts with the bank. Among them, many struggle to understand what minimum balance actually means.

“Tumhara naam kya hai, Basanti?” might sound funny here, but it reflects how confused many people feel when they see charges in their accounts without a clear understanding.

A lot of people are paying charges because they forget or do not understand the rules. As per RBI data in 2025 Q1, more than ₹660 crore was collected by all banks from minimum balance penalties.

Out of this, Kotak Mahindra Bank alone earned ₹39 crore, which made it one of the top five banks in this category.

This is a big number and shows why customers must become aware.

What is Minimum Balance?

Minimum balance means the average amount of money that must stay in your account during a set time (month or quarter). It is not the lowest number shown in your balance. Instead, the bank calculates your Monthly Average Balance (MAB).

Read More -  Kotak Mahindra Bank Zero Balance Account 

Example:

Anita has a Classic Savings Account, which needs ₹10,000 MAB. In April, she kept ₹15,000 for 10 days, ₹5,000 for 15 days, and ₹0 for 5 days.

Her MAB would be:
(15,000×10 + 5,000×15 + 0×5)/30 = ₹7,500

Since ₹7,500 < ₹10,000, a penalty will be charged.

Kotak Mahindra Bank Minimum Balance Requirement by Account Type

Different types of savings accounts are offered by Kotak Mahindra Bank. Each one of them is made with special needs in mind. To keep your account active and avoid extra charges, a minimum balance must be kept.

This balance is not the same for all accounts. Some need a monthly average, and some need a quarterly average. People often get confused. Like the famous dialogue says, “Itna sannata kyun hai bhai?”—this silence happens when we don’t know what to do next.

Let’s now understand the balance rules in a simple way.

Example: Rinku opened an ActivMoney Savings Account. He thought he had to keep ₹5,000 like a normal account. But the bank told him the required balance was ₹25,000. In April, he had only ₹15,000 as his average balance. So he was charged ₹600. He had no idea why this happened.

Now, here is a detailed table to show the required minimum balance for different accounts:
 

Some accounts, like BSBDA and 811, do not require any minimum balance. These are good for students, senior citizens, and low earners.

Can a Penalty Be Charged?

Yes, if the needed balance is not kept, a penalty will be charged by Kotak Mahindra Bank. The penalty is based on how short the balance is and which account you hold.

Example: Rajiv had an Edge Savings Account that needed ₹10,000 as a monthly average balance. But in May, he only managed ₹6,000. The shortfall was ₹4,000. The bank charged 6% of that shortfall. So, ₹240 was deducted from his account.

Rajiv said, “Yeh toh hona hi tha!” after he realised his mistake.

Here is the table to show the penalty amounts charged if the balance is not kept:
 

These charges are taken automatically. So, it is better to be aware and act early.

How to Check Your Monthly Average Balance in Kotak Bank?

Also Read - UCO Bank Net Banking

Meena, who works as a tailor in Delhi, was charged ₹180. She thought it was a fraud. But it was the penalty for not keeping her balance.

To avoid such problems, your balance must be checked from time to time. It can be done in these easy ways:

1. Mobile Banking App – You can log in and go to ‘Account Summary’ to see the balance.
    
2. Net Banking – Go to ‘Accounts’ then ‘Balance & Statements.’
    
3. SMS – Type and send BAL to 9971056767 using your registered number.
    
4. Call – Customer Care number 1860 266 2666 can be called to ask your MAB.
    
5. Visit the Branch – You can ask the bank staff to tell you the balance face-to-face.

These ways can help you stay informed.

Conclusion

The rule of minimum balance is not a punishment. It is set by banks to keep accounts healthy and running. But when customers do not know the rule, it feels like a surprise charge.

Kotak Mahindra Bank has many account types. Some need a big balance, and some need none. You must know what your account needs. This way, you can stop your money from going as a charge.

As the hero in a Hindi film said, “Risk toh Spider-Man ko bhi lena padta hai.” But you can stay safe by learning your bank’s rules.

So, keep your eyes on your account. Check your balance and save yourself from these small but painful penalties.

FAQs: 

What is the minimum balance for the Nova Savings Account?
The minimum balance required is ₹5,000 as a monthly average.

Are there any Kotak savings accounts where no minimum balance is required?
Yes, the BSBDA and 811 Digital Savings Accounts come with no minimum balance rule.

How is the penalty for non-maintenance calculated?
The penalty is calculated as 6% of the shortfall in the required monthly or quarterly average balance.

Can the penalty be avoided if I deposit money later in the month?
Only if the final monthly average meets the required limit, the penalty be avoided.

Where can I check my average balance?
You can check it on the mobile banking app, through net banking, by SMS, by calling customer care, or by visiting the branch.

How often does the bank check the balance?
For most accounts, the bank checks it every month. For a few accounts like Sanman or Sankalp, it is checked every quarter.

Can I ask the bank to cancel the penalty?
In very rare cases, the bank may cancel it. But mostly, the charges will not be reversed.

What is the penalty for not keeping a balance in a Pro Savings Account?
The penalty is 6% of the shortfall, and it can go up to a maximum of ₹600 per month.

Do SMS alerts help in avoiding charges?
Yes, they help by informing you on time when your balance drops below the limit.

What is the smart way to keep an average balance?
The best way is to deposit a larger amount in the beginning of the month and then use it slowly so the monthly average remains high.
 

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