RBI doesn’t regulate minimum balance requirements for banks, says governor Sanjay Malhotra

MUMBAI: The minimum balance requirements for saving accounts does not come under the regulatory domain of the Reserve Bank of India (RBI), and banks decide it as per their own business needs, stated RBI Governor Sanjay Malhotra. He was reponding to questions of ICICI Bank raising minimum balance requirement in saving accounts to up to Rs 50,000.

Speaking to the media, Malhotra said, “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”.

#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.twitter.com/GDcIZ5j1yr

— ANI (@ANI) August 11, 2025

ICICI Bank has significantly increased the minimum average balance requirement for its savings accounts across all branch categories, with the new rules effective from August 1, 2025.

For customers in metro and urban areas, the minimum average balance has been raised to Rs 50,000, up from the earlier Rs 10,000. In semi-urban branches, the new requirement is Rs 25,000, compared to Rs 5,000 previously. For rural branches, the minimum balance has increased to Rs 10,000 from Rs 2,500.

Malhotra noted that since the matter is not regulated by the RBI, each bank is free to set its own policy on minimum balance amounts based on its operational model and customer segments. The clarification comes as several customers have been expressing concerns over rising charges and balance requirements in savings accounts.

According to the bank, customers who fail to maintain the required minimum monthly average balance (MAB) will be charged 6 per cent of the shortfall or Rs 500, whichever is lower. However, these charges will be waived if the customer meets the enrolled program criteria.

In the case of Family Banking, the family must collectively maintain 1.5 times the programme’s eligibility criteria; otherwise, non-maintenance charges will apply individually to members who do not meet their own MAB requirement. However, pensioners are exempt from these charges. (ANI)