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.

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RBI Rate Cut: The Reserve Bank of India on Wednesday cut the repo rate by 25 basis points. With this, the repo rate has now come down to 6 percent. Due to this, many banks have also reduced their lending rates, that is, the interest rate on which the bank gives loans or lending. In such a situation, EMI will also be reduced on car, home or personal loan. Let us see which big public sector banks have taken the decision to reduce the interest rate.

Bank of Baroda

After the repo rate has been reduced, the Overnight Marginal Cost of Funds-based Lending Rate (MCLR) of Bank of Baroda has become 8.15 % overnight. While one year MCLR has come on 9 percent. The bank announced the interest rate cuts for retail and micro, small and medium enterprises (MSME) on Thursday. MCLR means the minimum interest rate on which the bank gives you a loan. The objective of this step is to provide loans to individuals and businesses at a cheap rate so that financial development can also be supported as well as financial inclusion.

Indian bank

Chennai-based Indian Bank has announced a cut of 35 basis points in its repo-linked interest (RPLR). With this, it will be reduced to 8.70 percent. These are coming into effect from April 11.

Punjab national bank

Punjab National Bank (PNB) has also given its repo-linked interest (RPLR) from 9.10 percent to 8.85 percent.

Uco bank

UCO Bank has also reduced its repo-linked interest (RPLR) to 8.8 percent, which will be effective from April 10, 2025.

Bank of india

Bank of India has a new RPLR 8.85 percent, which was earlier 9.10 percent. The bank has informed about its effective from Wednesday.

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