Banks Free to Decide Minimum Balance Requirement, Says RBI Governor
Reserve Bank of India (RBI) Governor Sanjay Malhotra has clarified that the central bank has not imposed any restrictions on the minimum balance requirement for savings accounts, leaving the decision entirely to individual banks.
RBI Governor Sanjay Malhotra: “What kind of minimum balance is required is left to the banks. Some have set it at Rs. 10,000, some at Rs. 2,000, and some have waived it completely. This is not within the regulatory domain.”
His remarks came in Gujarat in response to queries regarding ICICI Bank’s recent move to increase the minimum balance for new savings accounts from Rs. 10,000 to Rs. 50,000. The bank confirmed that statutory accounts like basic savings accounts and salary accounts will remain exempt from minimum balance requirements.
ICICI Bank stated that the revised savings account product includes waived charges that previously applied to standard accounts, aiming to boost current and savings account balances and reduce operating costs.
Minimum Balance Requirements by Major Banks
| Bank | Minimum Balance (Savings Account) | Remarks |
|---|---|---|
| ICICI Bank | Rs. 50,000 (new accounts) | Exempt for basic savings & salary accounts |
| HDFC Bank | Rs. 10,000 – Rs. 15,000 | Varies by location and account type |
| SBI | Nil | No minimum balance for regular savings accounts |
| Axis Bank | Rs. 10,000 – Rs. 15,000 | Exempt for certain special accounts |
The RBI Governor was visiting Gozaria gram panchayat in Mehsana to review re-KYC and scheme enrolment efforts as part of a nationwide gram panchayat-level campaign running till September 30. Since July 1, over 1.41 lakh camps have completed re-KYC for 35 lakh accounts.
Experts recommend that customers, especially those who do not maintain large balances, choose savings accounts with no or low minimum balance requirements to avoid penalty charges.
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