RBI breaks silence after ICICI Bank hikes minimum balance requirement to Rs 50000: 'It is not in...'

Days after ICICI Bank hiked minimum balance requirement to Rs 50,000, RBI Governor Sanjay Malhotra has said banks are free to decide the minimum balance for savings accounts and that it does not fall under the regulatory domain of the central bank. Asked about a private bank increasing the minimum balance required for savings accounts, Malhotra said, "The RBI has left it to individual banks to decide on what minimum balance they want to set. Some banks have kept it at Rs 10,000, some have kept Rs 2,000 and some have exempted (customers). It is not in the regulatory domain (of RBI)."

What is the minimum balance requirement in ICICI Bank?

ICICI Bank recently increased the minimum balance requirement for those opening new savings accounts from August 1. The minimum average monthly balance (MAB) has been increased five times to Rs 50,000 from Rs 10,000 on savings bank accounts, as per the lender's website. Similarly, MAB for semi-urban locations and rural locations have been increased five times to Rs 25,000 and Rs 10,000, respectively.

Which banks waived off minimum balance requirement?

The State Bank of India (SBI) has decided not to penalise savings account holders if they do not keep a minimum balance. 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.

READ | Mukesh Ambani makes BIG move as he now launches Campa beverages in...; teams up with...