By Admin 
Rbi on bank minimum balance: The Reserve Bank of India has denied any restriction on arbitrary minimum balance by banks. RBI Governor Sanjay Malhotra said that the central bank leaves the decision to banks how much minimum balance they decide. This statement from RBI has come at a time when ICICI Bank has increased the average monthly balance for the new savings account opening from 1 August 2025 to Rs 50,000.
The minimum balance in metro and urban branches has been increased from Rs 10,000 to Rs 50,000, while in semi-urban branches, it has been increased from Rs 5,000 to Rs 25,000 and in rural areas it has been increased to Rs 10,000.
RBI refuses to interfere
However, these changes will only apply to new customers, while the new minimum balance rules for old account holders will not apply until the notification is issued by the bank. If customers do not meet the terms of this average balance, then penalty will be imposed on them by the bank.
Reserve Bank of India Governor Sanjay Malhotra said on Monday that banks are free to fix the minimum balance in savings accounts and it does not fall under RBI regulatory jurisdiction. He said this in a conversation with reporters during a ceremony organized on financial inclusion at Gojiaia Gram Panchayat in Mehsana district of Gujarat.
What did Sanjay Malhotra say?
Asked about increasing the amount of minimum balance required for private bank ICICI’s savings account, Sanjay Malhotra said, “RBI has left the decision to decide the minimum balance on each bank. Some banks have kept it Rs 10,000, some have kept Rs 2,000 and some have given the customers. ICICI Bank has increased the minimum balance limit for those opening new savings accounts from 1 August.
Also read: In this country, you can go before 2026, 1 million lives, Alan Musk said- now AI can be made by their God, know why this is like this