Reserve Bank of India Governor Sanjay Malhotra clarified on Monday that banks are free to decide the minimum balance requirement for savings accounts, as it does not fall under the regulatory jurisdiction of the RBI. He made this statement during a media interaction on the sidelines of the ‘Financial Inclusion Saturation Drive’ held at Gozaria village panchayat in Mehsana district, Gujarat.
When asked about ICICI Bank’s recent decision to raise the Minimum Average Balance (MAB) for savings accounts from ₹10,000 to ₹50,000 for new account holders starting August 1, Malhotra responded, “It is up to individual banks to set their minimum balance. Some have kept it at ₹10,000, others at ₹2,000, and some have waived it entirely. It’s not under RBI regulation.”
Similarly, ICICI Bank has revised the MAB for semi-urban and rural areas to ₹25,000 and ₹10,000, respectively. In contrast, State Bank of India (SBI) continues its customer-friendly policy, deciding not to penalize account holders for non-maintenance of minimum balance—especially for Jan Dhan Yojana accounts.
Malhotra also used the event to highlight the importance of digital literacy, calling it essential for economic progress in today’s age. “Just like in the past people said if you don’t study, you won’t succeed, today it is the same for digital knowledge,” he remarked.
The Governor emphasized that all financial decisions should prioritize the last person in society, reflecting the inclusive goals of the Pradhan Mantri Jan Dhan Yojana, launched over a decade ago to promote universal access to banking services.
He also encouraged citizens to make use of additional benefits such as accident insurance, life insurance, and the Atal Pension Yojana, noting that simply opening a bank account is only the beginning of financial inclusion.
Bank of Baroda CEO Debadatta Chand, who was also present at the event, urged beneficiaries to keep their KYC details updated in Jan Dhan accounts to ensure they remain active and eligible for benefits. The function concluded with the distribution of Atal Pension Yojana certificates and accident insurance claim settlements to families of deceased beneficiaries in Gozaria village.