Questions about Premium Bank Account Eligibility, Downgrade & Charges

[bhavyakjain]

Hi everyone,

I have some doubts about premium savings account tiers that depend on salary credit or NRV/deposit criteria.

If someone later lets the relationship become passive/dormant (salary stops, NRV drops, FD withdrawn, etc.), I'm trying to understand what typically happens.

1. Account Downgrade
a. Do banks automatically downgrade the account once eligibility isn’t met?

2. Zero MAB after downgrade
If the zero-MAB benefit is removed and the SA balance is kept at zero:
a. Are non-maintenance charges levied?
b. Can the bank close/deactivate the account for having zero balance?

3. Zero balance + an FD
If SA balance is zero but a small FD is still maintained:
a. Will MAB penalties still apply?
b. Can the bank still try to close/deactivate the account?

4. LTF premium debit/credit cards
If premium chargeable cards were given as LTF due to the premium account tier:
a. After downgrade, can the bank start charging annual fees?

5. Using the downgraded/basic account again
If the customer later revives the account (regular usage, deposits, transactions) without upgrading back to premium:
a. Any hidden charges/issues when becoming active again?
b. Any impact on MAB/NRV calculation or treatment of the account?

6. Future upgrades or applying new cards
If the customer later tries to re-upgrade or apply for new premium cards:
a. Do past downgrades cause any internal flags?
b. Any impact on eligibility for LTF offers or premium products?

Examples :
1. HDFC Imperia – Platinum DC / Regalia Gold CC
2. Axis Burgundy – Burgundy DC / Select CC
3. ICICI Wealth – Wealth DC / Sapphiro CC / Emaralde CC
4. IDFC FIRST Wealth – Wealth DC / Wealth CC


Anyone who has gone through a downgrade or maintained a dormant premium account—any caveats, clawbacks, or unexpected issues to watch out for?

Thanks in advance!

 

[Anindya98]

1. Account Downgrade
a. Do banks automatically downgrade the account once eligibility isn’t met?

No, depends on many factors.

b. Can the bank close/deactivate the account for having zero balance?

Yes, they will notify you multiple times before doing that.

3. Zero balance + an FD
If SA balance is zero but a small FD is still maintained:
a. Will MAB penalties still apply?

Officially Yes

b. Can the bank still try to close/deactivate the account?

Why will they do that out of the blue without a reason?

4. LTF premium debit/credit cards
If premium chargeable cards were given as LTF due to the premium account tier:
a. After downgrade, can the bank start charging annual fees?

Yes

5. Using the downgraded/basic account again
If the customer later revives the account (regular usage, deposits, transactions) without upgrading back to premium:
a. Any hidden charges/issues when becoming active again?

No, only they will ask you to do KYC again if it is dormant for more than a certain period.

b. Any impact on MAB/NRV calculation or treatment of the account?

NO

6. Future upgrades or applying new cards
If the customer later tries to re-upgrade or apply for new premium cards:
a. Do past downgrades cause any internal flags?

NO

b. Any impact on eligibility for LTF offers or premium products?

NO

 

[bhavyakjain]

@Anindya98
1. So they can close my account if have zero balance in savings but have FD ?
2. Wasn't there some RBI rule to not deduct penalty on negative balance in case of non-maintainace of MAB ?
3. If they are offering the card as LTF, can they still start charging the fees in future ? Doesn't that defeat the meaning of LTF ? If so, how can I keep premium card LTF and still avoid having to maintain eligibility criteria?

 

[Anindya98]

@Anindya98
1. So they can close my account if have zero balance in savings but have FD ?

No

2. Wasn't there some RBI rule to not deduct penalty on negative balance in case of non-maintainace of MAB ?

Yes, but when you reactivate the account, it will show as a hold balance.

3. If they are offering the card as LTF, can they still start charging the fees in future ?

No, but some cards have certain conditions attached to them.

Doesn't that defeat the meaning of LTF ?

LTF with x condition & Fully LTF are 2 different things

If so, how can I keep premium card LTF and still avoid having to maintain eligibility criteria?

Focus on 2 things: CLTF or LTF
Go for the LTF ones even if you don't maintain the relationship, it will remain LTF