RBI Governor: Banks Free to Set Minimum Balance for Savings Accounts
Savings account holders alert: RBI leaves MAB decision to banks; ICICI raises metro balance to ₹50,000.
Minimum Account Balance in India — RBI Explains, ICICI Bank’s ₹50,000 Rule in Focus
💰 Banks in India have complete autonomy to decide the minimum balance requirement for savings accounts, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Monday, 11 August 2025.
Speaking at a Financial Inclusion Saturation Drive in Mehsana, Gujarat, Malhotra clarified that the RBI does not regulate the Minimum Account Balance (MAB) policy. "Some banks have set it at ₹10,000, some at ₹2,000, and others have removed it entirely," he said.
ICICI Bank’s New ₹50,000 Minimum Balance Rule 📈
The statement comes after ICICI Bank, India’s second-largest private lender, raised its minimum balance requirement for metro and urban branches to ₹50,000 per month for savings accounts opened after 1 August 2025.
♦ Earlier Requirement: ₹10,000/month
♦ Semi-Urban Branches: Raised from ₹5,000 to ₹25,000/month
♦ Rural Branches: Raised from ₹5,000 to ₹10,000/month
Failure to maintain the MAB could result in penalty charges. Requirements vary depending on the account type and branch location — with metro and urban branches generally demanding higher balances than semi-urban or rural branches.
Public Sector Banks Offer Relief 🏦
State-run banks usually have lower minimum balance requirements and, in many cases, no MAB at all, especially for schemes like Jan Dhan accounts. This gives customers more flexibility to maintain low or zero balances without incurring fees.
RBI Chief Pushes for Digital Literacy 💻
Malhotra stressed that financial inclusion is only the first step and urged citizens to embrace digital literacy to fully benefit from banking services.
“Earlier, people said if you don’t study, you won’t prosper. Today, if you lack digital literacy, you won’t progress,” Malhotra said.
He encouraged account holders to actively use government schemes such as accident insurance, life insurance, and the Atal Pension Yojana, calling banking services a fundamental right for every citizen.
