RBI Governor Sanjay Malhotra has clarified that the Reserve Bank of India does not impose restrictions on the minimum balance requirements for bank accounts, leaving the decision entirely to individual banks. “What kind of minimum balance is required is left to the banks. Some have set it at ₹10,000, some at ₹2,000, and some have waived it entirely. This is not within the regulatory domain,” Malhotra stated.
Key Highlights
- RBI Governor Sanjay Malhotra says banks have the autonomy to set minimum balance requirements.
- ICICI Bank raised the minimum average balance for savings accounts to ₹50,000 in metro and urban areas.
His comments came in Gujarat while responding to a query about ICICI Bank’s decision to raise the minimum balance for new savings accounts from ₹10,000 to ₹50,000.
Malhotra was visiting a financial inclusion camp at Gozaria gram panchayat in Mehsana to assess progress in re-KYC and scheme enrolments under a nationwide gram panchayat-level campaign running until September 30. Since July 1, over 1.41 lakh camps have been held, completing re-KYC for 35 lakh accounts.
ICICI Bank clarified that statutory accounts, such as basic savings and salary accounts, will remain exempt from minimum balance requirements. The bank’s move is viewed as an effort to boost current and savings account balances while reducing operational cost pressures. The newly introduced savings account product also includes multiple fee waivers that previously applied to regular savings accounts.
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Experts advise that account holders, particularly those who do not maintain high surpluses, should choose accounts with no or minimal balance requirements to avoid unnecessary charges while retaining flexibility in their banking operations. This approach can help customers better manage their finances without incurring extra costs.
