In response to ICICI Bank‘s decision to increase minimum balance requirements for certain savings accounts, Reserve Bank of India (RBI) Governor Sanjay Malhotra clarified the regulatory framework on August 11. Malhotra emphasized that setting minimum balance requirements is a prerogative of individual banks, not dictated by the RBI. ICICI Bank recently increased its minimum balance for new savings accounts opened after August 1 to ₹50,000, a fivefold increase from the previous ₹10,000 MAB applicable until July 31, 2025.
“RBI has left it to the banks to decide on the minimum balance. Every bank has its own minimum balance requirement,” Malhotra stated. He further noted the variance across banks, with some setting the bar at ₹10,000, others at ₹2,000, and some waiving it entirely, underscoring that this falls outside the RBI’s regulatory purview.
The bank’s website indicates that MAB requirements for semi-urban and rural branches have also seen a fivefold increase, now standing at ₹25,000 and ₹10,000, respectively. Public sector banks traditionally maintain lower minimum balance thresholds, often waiving them altogether for Jan Dhan accounts. Several public sector institutions have eliminated this requirement, meaning customers are spared penalties for failing to meet specified minimums.
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