
Today, we will discuss an important topic related to banking, which many account holders frequently encounter. Have you ever received a message from your bank mentioning “Mibal Charges” or seen terms like “Minbal chgs” or “Mibal charges lien lift“?
If yes, you might be wondering what mibal charges are, why these charges are deducted, and how you can avoid them. Banks provide various services to their customers, but often, these services come with associated charges.
Let’s dive into the details of Mibal Charges to understand what they mean, when they are applied, and how you can manage your account better.
What Are Mibal Charges?

Mibal Charges, also known as Minimum Balance Charges, are fees applied to your bank account when your account balance falls below the required minimum limit set by the bank. Every bank sets its own minimum balance requirements and corresponding charges, which may vary based on the type of account you hold.
For instance, if you have a zero-balance account, you won’t be subject to these charges. However, if you use regular banking services or maintain a savings account with specific balance requirements, you may receive messages about these charges.
Full Form of Mibal Charges
The full form of Mibal Charges is Minimum Balance Charges. These charges are levied when your account balance is less than the required minimum amount set by your bank. Different banks have varying minimum balance criteria, and the charges for not maintaining this balance can differ as well.
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When and Why Are Mibal Charges Deducted?
Mibal Charges are deducted under the following circumstances:
- Failure to Maintain Minimum Balance: When the balance in your savings account falls below the required minimum, the bank deducts Mibal Charges.
- Service Utilization: If you utilize additional services offered by your bank, such as ATM withdrawals, cheque books, or SMS alerts, Mibal Charges may also be applied when the minimum balance is not maintained.
- Frequency of Deductions: Generally, these charges are deducted on a quarterly basis. The average balance of your account is calculated every three months, and if it is below the set limit, charges are applied accordingly.
Types of Bank Charges: A Brief Overview
Banks provide a range of services, but each service often comes with its own set of charges. Here are some of the common charges you might encounter:
- TRF Charges: Charges related to fund transfers.
- TRF Bima Premium: Insurance-related charges.
- SMS Charges: Charges for receiving SMS alerts about transactions.
Knowing these charges can help you better manage your account and avoid unnecessary deductions.
Mibal Charges in Bank of India (BOI)

Let’s look specifically at the Bank of India (BOI) and how they apply Mibal Charges. BOI sets different minimum balance requirements based on whether your account is in a rural or urban area. The charges differ accordingly:
Minimum Balance Charges for Rural Areas
For accounts in rural areas, the average quarterly balance should not be less than ₹500. If the balance falls below this amount, charges are applied as follows:
- Balance between ₹250 and ₹499: 50% of the service charge is applied. For example, if the total charge is ₹100 + 18% GST, which equals ₹118, then 50% of this amount (₹59) will be deducted.
- Balance between ₹100 and ₹249: 80% of the charge is deducted. In this case, 80% of ₹118 is approximately ₹94.
- Balance below ₹100: The full charge of ₹100 + GST is deducted.
The maximum charge that can be deducted in rural areas is ₹100 + GST. If your balance is within the range mentioned, the deduction will be a percentage of this amount.
Minimum Balance Charges for Urban Areas
For urban account holders, the requirements are higher. The average quarterly balance should be at least ₹1000. If your balance is below this, the following charges apply:
- Balance between ₹500 and ₹999: 50% of the charge is applied. If the total charge is ₹200 + 18% GST (₹236), then 50% of this amount (₹118) will be deducted.
- Balance between ₹250 and ₹499: 80% of the charge is applied. For example, 80% of ₹236 is approximately ₹189.
- Balance below ₹250: The full charge of ₹200 + GST is deducted.
For urban accounts, the maximum deduction is ₹200 + GST. The deduction is adjusted according to your average balance within the specified ranges.
Important Note on Quarterly Balance
The charges are calculated based on the average balance maintained in your account over a 90-day period (3 months). For urban accounts, the average balance must not be less than ₹1000, and for rural accounts, it must not be less than ₹500. Maintaining the required balance consistently is crucial to avoid these charges.
How to Avoid Mibal Charges?
Avoiding Mibal Charges is possible by managing your account effectively. Here are some tips to help you keep your charges to a minimum:
- Maintain the Minimum Balance: The simplest way to avoid these charges is to ensure that your account balance does not fall below the required minimum. Set reminders to regularly check your balance and make deposits when necessary.
- Opt for Zero-Balance Accounts: If possible, opt for a zero-balance savings account where no minimum balance is required. Many banks offer such accounts, especially for salaried employees and students.
- Monitor Your Transactions: Keep a close watch on your account activities, and be aware of any upcoming charges. This helps you maintain the required balance before deductions occur.
- Utilize Mobile Banking: Use mobile banking apps to keep track of your account balance and any deductions. Most banks offer alerts that can notify you if your balance is approaching the minimum limit.
- Deposit Small Amounts Regularly: Even small, regular deposits can help you maintain the required average balance over the quarterly period.
Conclusion
Mibal Charges can be a source of frustration if you are unaware of them. Understanding these charges and how they work is essential for every account holder. Banks provide numerous services, and each service has associated costs.
By managing your account smartly, maintaining the required minimum balance, and being aware of potential charges, you can avoid unnecessary deductions and ensure smooth banking operations. Keep an eye on your balance, utilize the tips mentioned above, and you can save yourself from Mibal Charges in the future.

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