After ICICI Bank raised the minimum balance limit of its savings account, RBI Governor Sanjay Malhotra on Monday clarified that the Reserve Bank of India does not regulate the minimum balance requirements for savings accounts, leaving the decision to individual banks.
Speaking from Mahesana, Gujarat, he noted that while some banks set the minimum balance at Rs 10,000, others have it as low as Rs 2,000.
Speaking to reporters in Mahesana, Gujarat, Malhotra said, “On ICICI Bank’s announcement of minimum balance requirement for savings accounts, RBI Governor Sanjay Malhotra says, “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. This does not come under the regulatory domain.”
#WATCH | Mahesana, Gujarat: On ICICI Bank’s announcement of minimum balance requirement for savings accounts, RBI Governor Sanjay Malhotra says, “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… pic.x.com/GDcIZ5j1yr
— ANI (@ANI) August 11, 2025
Earlier on Saturday, ICICI Bank had increased the minimum average balance required in savings accounts starting August 1, 2025. Customers in metro and urban areas now need to keep Rs 50,000, up from Rs 10,000.
In semi-urban areas, the minimum balance has gone up to Rs 25,000 from Rs 5,000, and in rural areas, it is now Rs 10,000 instead of Rs 2,500.
Many customers, especially in rural and semi-urban areas, may find it difficult to maintain this higher balance. If they don’t, the bank will charge a penalty of either 6% of the shortfall or Rs 500, whichever is lower.
Pensioners are exempt from these charges. Families in the bank’s Family Banking program must maintain a combined balance of 1.5 times the requirement; otherwise, members who fall short will be charged individually.
The bank will also charge fees for bounced ECS or NACH payments, returned cheques, and declined ATM or card transactions due to insufficient funds. Because of these changes, some customers may switch to banks with lower balance requirements or basic accounts, while others will need to manage their finances carefully to avoid penalties.
Several social media users had slammed the decision questioning why would anyone want to keep money in their accounts instead of investing it. Many social media users called the move promoting ‘elitism’.