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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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.

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