RBI Governor's Statement
Reserve Bank of India Governor Sanjay Malhotra made it clear that banks determine their own minimum balance. According to him, the RBI doesn't have any control over this issue. At an event in Gujarat, Malhotra described how some banks have kept the limit at ₹10,000, others at ₹2,000, and a few have abolished the minimum balance altogether.
ICICI Bank's New Minimum Balance Rules
ICICI Bank has recently notified higher minimum balance values for savings accounts opened after August 1, 2025.
- For account holders in metropolitan and urban branches: the minimum balance is ₹50,000 (earlier ₹10,000).
- For semi-urban account holders: the threshold has been raised to ₹25,000 (earlier ₹5,000).
- For rural account holders: the value is now ₹10,000 (earlier ₹2,500).
Charges for Non-Compliance
ICICI Bank stated that if customers do not maintain the required balance, a fee will apply. The charge will be 6% of the shortfall amount or ₹500, whichever is lower.
Public Response
Some banks have recently waived penalties for not maintaining a minimum balance. However, ICICI Bank’s steep increase in the requirement has attracted criticism, especially from customers in metro and urban areas.
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