PTI Gozaria

Reserve Bank of India Governor Sanjay Malhotra on Monday said banks are free to decide the minimum balance for savings accounts and that it does not fall under the regulatory domain of the RBI.

About a private bank increasing the minimum balance required for savings accounts, he said, "The RBI has left it to 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)." 

Most PSU banks have removed min balance charges: Chaudhary

Most public sector banks (PSBs) have removed their minimum balance charges in general savings bank accounts, while some have rationalised to promote financial inclusion, Minister of State for Finance Pankaj Chaudhary said on Monday.

Under the Pradhan Mantri Jan Dhan Yojana, banks are required to open accounts without any minimum balance requirement. Certain basic banking facilities, such as deposits, withdrawals, ATM and cards, are to be provided in case of BSBDA accounts without any charges, Chaudhary said in a written reply in the Lok Sabha.

Protests against ICICI Bank’s decision

A civil society organisation advocating banking stakeholders' interests has written to the Finance Ministry, requesting its intervention into ICICI Bank's decision to raise the minimum average balance (MAB) requirement for new savings accounts, and said such a move is detrimental to the government's vision of inclusive banking and growth.