'RBI has left it to the banks...': Governor Sanjay Malhotra on ICICI Bank’s minimum balance hike in savings accounts

'RBI has left it to the banks...': Governor Sanjay Malhotra on ICICI Bank’s minimum balance hike in savings accounts

Reserve Bank of India Governor on August 11 reacted to ICICI Bank hiking minimum balance for non-salary accounts and said that it doesn't fall "under any regulatory domain".

Recently, the private lender has raised the minimum balance requirement for new savings accounts opened on or after August 1 by five times to Rs 50,000. The minimum monthly average balance (MAB) for savings bank accounts till July 31, 2025 for ICICI Bank customers was Rs 10,000.

"RBI has left it to the banks to decide on the minimum balance. Every bank has its own minimum balance requirement," Malhotra said on August 11.

"Some banks have kept it at Rs 10,000, some have it at Rs 2,000 and some have even waived it. This is not in the (RBI's) regulatory domain."

Similarly, MAB for semi-urban locations and rural locations have been increased five times to Rs 25,000 and Rs 10,000, respectively, according to information available on the ICICI Bank website.

Traditionally, public sector banks have lower balance requirements compared to private lenders with the requirement waived for Jan Dhan accounts.

Several public sector banks have done away with the requirement, and customers who fail to maintain the minimum prescribed balance do not need to pay a penalty.