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Key Points

The RBI does not regulate minimum balance requirements for savings accounts, leaving it to individual banks. ICICI Bank has raised its minimum balance threshold significantly, especially in metro areas. Customers failing to meet the new requirements face penalties, though pensioners are exempt. The move has sparked concerns among account holders about rising banking costs.

Key Points: RBI Governor Sanjay Malhotra Says Banks Set Minimum Balance Rules

  • RBI confirms no regulation on bank minimum balances
  • ICICI raises metro area savings account requirement to Rs 50,000
  • Shortfall penalties capped at 6% or Rs 500
  • Pensioners exempt from minimum balance charges
2 min read

RBI does not regulate minimum balance requirements for banks: RBI Governor

RBI clarifies banks independently decide minimum balance requirements as ICICI hikes savings account threshold to Rs 50,000 in metro areas.

"The Reserve Bank of India has left it to the banks to decide the minimum balance amount. - Sanjay Malhotra, RBI Governor"

Mumbai, August 12

The minimum balance requirements for saving accounts does not come under the regulatory domain of the Reserve Bank of India (RBI), banks decide it as per their own business needs, stated RBI Governor Sanjay Malhotra on questions of ICICI Bank raising minimum balance requirement in saving account to up to Rs 50,000.

Speaking to the media, Malhotra said, "The Reserve Bank of India has left it to the banks to decide the minimum balance amount. Some banks have a minimum balance of Rs 10,000, while some have a minimum balance of Rs 2,000."

ICICI Bank has significantly increased the minimum average balance requirement for its savings accounts across all branch categories, with the new rules effective from August 1, 2025.

For customers in metro and urban areas, the minimum average balance has been raised to Rs 50,000, up from the earlier Rs 10,000. In semi-urban branches, the new requirement is Rs 25,000, compared to Rs 5,000 previously. For rural branches, the minimum balance has increased to Rs 10,000 from Rs 2,500.

Malhotra noted that since the matter is not regulated by the RBI, each bank is free to set its own policy on minimum balance amounts based on its operational model and customer segments.

The clarification comes as several customers have been expressing concerns over rising charges and balance requirements in savings accounts.

According to the bank, customers who fail to maintain the required minimum monthly average balance (MAB) will be charged 6 per cent of the shortfall or Rs 500, whichever is lower.

However, these charges will be waived if the customer meets the enrolled program criteria.

In the case of Family Banking, the family must collectively maintain 1.5 times the program's eligibility criteria; otherwise, non-maintenance charges will apply individually to members who do not meet their own MAB requirement. However, pensioners are exempt from these charges.

- ANI

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Reader Comments

P
Priya S
RBI should step in and regulate this. Private banks are making it impossible for common people to maintain accounts. Time to switch to public sector banks or small finance banks!
A
Aditya G
Actually this makes business sense. ICICI is targeting HNI customers. There are many banks with lower requirements. Customers should choose what suits them best.
S
Sarah B
As an NRI, I find Indian banking charges quite reasonable compared to global standards. But ₹50k is indeed steep for average Indians. Maybe offer more account tiers?
K
Kavya N
My father's pension account is thankfully exempt. But what about young professionals? We're already struggling with inflation and now this 🥺
M
Michael C
The 6% charge on shortfall is predatory. In most countries, banks can't charge percentage-based penalties like this. RBI should at least cap penalty amounts.
N
Nikhil C
This is why I switched to digital banks like Fi and Jupiter. Zero balance accounts with better features. Traditional banks need to wake up!

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