DBS Bank India is restructuring its savings account fee plan. Savings accountholders with low average monthly balance (AMB) in their accounts will now have to pay a charge from August 1, 2025. At the same time, changes to ATM cash withdrawal charges have already been put into effect from this May.
These new provisions are meant to encourage customers to maintain a regular account balance and monitor their ATM use in a vigilant manner.
New Monthly Balance Charges to be Implemented in August
Under the new regulation, accountholders will be charged if their account balance falls short of the monthly average balance requirement. The bank will collect 6 per cent of the value of the shortfall, with a cap on how much can be collected depending on the type of account.
For instance, if a customer has a DBS Bank Savings Account and has an average monthly balance of only Rs 6,000 instead of the minimum Rs 10,000 mandated, the Rs 4,000 shortfall will attract a penalty of Rs 240. However, this fee would never exceed Rs 500, regardless of the size of the shortfall.
The bank has informed its clients of the change through SMS, asking them to ensure they maintain the required minimum balance to avoid the charges.
Penalty Fees Differ with Account Type
DBS Bank offers several versions of savings accounts, and each account has different balance requirements and penalty limits. This is how the charges would be applicable depending on the type of account:
For SB Others Account, the lowest average balance is Rs 1,000 and the highest penalty is Rs 50.
For Growth One Savings Account, the AMB is Rs 5,000 and the highest penalty is Rs 250.
For the normal DBS Bank Savings Account, the AMB is Rs 10,000 and the highest penalty imposed can be Rs 500.
For Youth Power Account of Laxmi Savings, the balance can be just Rs 100 and the penalty can be up to Rs 5.
The TASC Youth Power Account mandates an AMB of Rs 10,000 balance and the charge can go up to Rs 500.
ATM Withdrawal Charges Increased from May
From May 1, 2025, DBS Bank has also changed the fees charged on cash withdrawals from ATMs. Under the revised guidelines of the Reserve Bank of India (RBI), customers will now be charged Rs 23 per transaction when they withdraw money from a non-DBS ATM post the free monthly limit.
The bank communicated this change through a letter it circulated to all its customers. Though there are charges for non-DBS ATMs, DBS Bank ATMs can still be utilised by customers freely without any fee or limit.
What Should You Do
If you are a DBS Bank customer, you should try to maintain the AMB required for your account and refrain from making cash withdrawals from other banks’ ATMs beyond the free monthly limit.
You could also opt for alerts or reminders on your mobile from the bank to update you should your AMB fall below the requirement. If you are unsure of the type of account you hold, you could get in touch with the bank or refer to your application form for clarity.
