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

Minimum balance on saving accounts: Recently, most of the public sector banks have abolished the minimum balance limit on savings accounts. Earlier it was mandatory to keep a certain amount, but the customers have been freed from this mess. However, these conditions are still applicable in many public sector banks. In such a situation, if you are planning to open an account in a bank, then this news can be of your use, because it is very important to know its minimum balance before opening an account in any bank.

What are the rules of which banks

One of the large private sector banks, ICICI Bank has changed the terms of minimum balance for savings account holders, raising this limit to branches of big cities to Rs 50,000, which was earlier Rs 10,000. Similarly, the minimum balance in semi-urban branches has been increased to Rs 25,000, which was earlier Rs 5,000, while in rural branches it has been increased to Rs 10,000, which used to be Rs 2,500 earlier. This rule has come into effect from 1 August.

Actually, every bank has fixed the minimum balance according to its own. This is the amount that you need to keep in your account, and if the balance is reduced by this limit in the month, then the bank imposes penalty on customers. Earlier, the minimum amount for urban areas in most public sectors was fixed from Rs 1,000 to Rs 4,000, but now many banks including Canara Bank, Bank of India and State Bank of India have abolished the condition of minimum balance on savings accounts.

However, this condition is still applicable in private banks. The minimum balance of savings account in HDFC and Kotak Mahindra Bank is Rs 10,000, Rs 5,000 in Bandhan Bank and Rs 12,000 in Axis Bank.

Also read: Shares bounced after SBI Q1 results, competition to buy, do Buy or SAIL? Learn the advice of the broking firm

Bank wave off average minimum balance charges: The problem of many people is often that if there is no money in the account, the average minimum balance charge is deducted by the bank. But now there is no need to worry about the customers of Savings Accounts. Six big banks, including SBI, have recently abolished the charge incurred in the form of average monthly balance. That is, if your account remains empty, then no charge will be deducted from the bank. Let us know that the banks have now finished the minimum balance charge-

1-Bank of Baroda

The Bank of Baroda has abolished the charcha to not fulfill the terms of minimum balance on all standard savings accounts from 1 July 2025. However, this charge has not been finished on premium savings account schemes.

2-Indian Bank

Indian Bank has also announced to completely eliminate the minimum balance charge on its own. The average minimum balance charge has ended since 7 July 2025 on all types of savings accounts.

3-kenra bank

In the month of May this year, Canara Bank has abolished the minimum balance charge levied on the savings account in all ways, including the regular savings account. These include salary and NRI savings account.

4-PNB

Punjab National Bank has also given relief to its customers and has abolished the minimum average balance charge on all types of savings accounts.

5-State Bank of India

The State Bank of India, who has been charging average minimum balance since 2020, has also ended it now. That is, no charge will be charged even if the terms of minimum balance are not met on the savings account.

6- Bank of Baroda

Bank of Baroda has also decided not to take any charge from the bank customers for not fulfilling the terms of minimum balance. According to the press release of Bank of India, these changes have been made with the aim of increasing the changed conditions and financial flexibility of the market.

Also read: EXPLAINED: 50% on copper and 200% Trump’s tariff on pharmaceutics will affect India?

Punjab national bank: Punjab National Bank (PNB) has given great relief to its account holders. The bank has announced that no penalty will be charged for not maintaining a minimum average balance in the savings account. This decision of the bank will provide relief to the people from the concern of keeping the minimum balance in the account.

The bank says that the aim of this step is to promote financial inclusion and make banking more accessible for all. This new rule of the bank has come into force from July 1, 2025. This will help women, farmers and lower income families especially. Last month, Canara Bank also removed the need to maintain average monthly balance (Amb) on all its accounts from the month of June.

Why do banks impose minimum balance rule?

The bank is therefore asks to maintain the minimum average balance in its account so that its operational expenses can be met and customers can spend various services such as online banking, ATM, branch, etc. Many times the bank also provides facilities like more interest rate, free ATM transaction to customers on maintaining minimum balance.

At the same time, the bank charge a fine from its customers for not maintaining minimum balance. Many times, if the minimum average balance is not maintained in the account for a long time, the bank account is closed. Broadly understanding, the bank is a business, which depends on deposits and penalty to meet their expenses.

According to the RBI rules regarding minimum balance, the bank always keep in mind that the balance does not go to negative due to penalty in the account if there is no minimum balance maintained in the account.

Banks also earn from these things

However, many times banks remove this rule so that people from far-flung rural areas and low income are easy to use banking services without any fine. With this, the cost of the bank’s operational cost comes out of many other things such as SMS alert fees, service fees, transaction fees, interest, etc.

Also read:

These things make a strong money, Haseen Jahan also meets Mohammed Shami, millions of rupees every month

No penalty for low balance: Till now, there was a rule in any bank that if you do not maintain a certain amount in a month, then you have to pay for it. But now a big relief is going to be available from a government sector bank. Now no fee will have to be paid even if the minimum balance bank is not in the bank. It has been announced by Canara Bank that there is no need to complete the rules of keeping minimum balance in the savings account.

The law of minimum balance is over

Canara Bank said that bank customers will no longer be charged for not having minimum balance in the account, which includes Savings Account, NRI Savings Account and Salary Account. The statement said on behalf of the bank that it has been implemented from 1 June 2025. Earlier, the account was charged by the bank if there was no certain minimum balance in the month.

This rule has been started by Canara Bank at present and it is expected that after this initiative of the bank, people will get relief because many people are unable to meet the terms of minimum balance, due to which they have to be charged every month.

Separate charge of separate bank

It is worth noting that at this time, every bank has different rules for urban, semi urban or rural areas for minimum balance from every bank. From time to time, changes are made by the bank. That is why it is definitely that you regularly know the rules of the bank, which has your account. If you do not have a minimum balance, you can be deprived of facilities like check book, or net banking on behalf of some banks.

Also read: India will not be able to buy cheaper oil from Russia, America is bringing 500 percent tariff to the strict law ever