RBI Governor’s Big Revelation on Minimum Bank Balance Rules Shakes Customers
New Delhi(The Uttam Hindu): Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday clarified that the decision to set a minimum average balance for non-salary accounts rests entirely with banks, as it does not fall under the RBI’s regulatory jurisdiction.
His remarks come in the wake of ICICI Bank’s recent move to sharply increase the minimum average balance requirement for new savings account holders in metro and urban areas from ₹10,000 to ₹50,000, effective August 1, 2025.
Speaking to the media on the sidelines of a financial inclusion event in Gujarat, Governor Malhotra said, “The central bank has left it to individual banks to determine the minimum average balance. Some banks set it at ₹10,000, others at ₹2,000, and many have completely removed the requirement.”
Under ICICI Bank’s new rules, new customers in semi-urban areas must maintain ₹25,000, while those in rural areas need to keep ₹10,000. For existing customers, the limits remain unchanged — ₹10,000 in metro/urban areas and ₹5,000 in semi-urban/rural areas.
The bank has also stated that customers who fail to maintain the required balance will face a penalty of either 6% of the shortfall or ₹500, whichever is lower. Additionally, only three free cash deposits are allowed per month; beyond that, customers will be charged ₹150 per transaction.