Banks Given Freedom to Decide on Minimum Balance Requirements

RBI Governor Sanjay Malhotra has clarified that the decision regarding the extent of minimum balance required in bank accounts is left to individual banks, with no regulatory restrictions imposed by the RBI.

"What kind of minimum balance required is left to the banks. Some of them have kept Rs 10,000, some Rs 2,000 and some have completely waived it off. This is not within the regulatory domain," said Malhotra.

ICICI Bank's Recent Move Sparks Discussion

The governor's comments came in response to questions about ICICI Bank's decision to increase the minimum balance requirement for new accounts from Rs 10,000 to Rs 50,000. However, statutory accounts like basic savings and salary accounts remain exempt from this requirement.

Financial Inclusion Efforts Underway

Malhotra's visit to a financial inclusion camp in Mehsana highlights the RBI's ongoing efforts to promote financial literacy and inclusion, with over 1.41 lakh camps conducted since July 1.

Experts advise account holders, especially those not maintaining large balances, to opt for accounts with no or low minimum balance requirements to avoid unnecessary charges.