Banks free to decide on minimum balance for savings accounts: RBI Guv
PTI
Gozaria (Guj), Aug 11 (PTI) 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.
He was speaking to reporters on the sidelines of a function on 'Financial Inclusion Saturation Drive' organized at Gozaria village panchayat in Gujarat's Mehsana district.
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)." In a recent decision, private lender ICICI Bank increased the minimum balance requirement for those opening new savings accounts from August 1.
The minimum average monthly balance (MAB) has been increased by five times to Rs 50,000 from Rs 10,000 on savings bank account, 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.
Incidentally, the State Bank of India has decided not to penalise savings account holders if they do not keep minimum balance.
Speaking at the event, Malhotra said digital literacy was very important to succeed in the new age.
'Earlier they used to say if you do not study you will not prosper. In today's age, this is the same for digital literacy. If you do not have digital literacy you will not progress," he said.
All decisions that are taken must ensure it benefits the last person in society, the RBI governor asserted.
The Pradhan Mantri Jan Dhan scheme was started with the same goal some 10 or 11 years ago so that everybody could get access to banking services, he said.
'But opening an account is just the beginning, a door has been opened. The government has started various schemes like accident insurance, life insurance and Atal pension scheme. I urge everyone to take benefit of these. To get proper banking service is your right," he said.
Bank of Baroda managing director and chief executive officer CEO Debadatta Chand, speaking at the event, emphasised the importance of regularly updating 'Know Your Customer' (KYC) details for Jan Dhan accounts to ensure they remain functional.
The function also witnessed distribution of Atal Pension Yojana insurance certificates and accident claim insurance to kin of those who had died after availing insurance in Gozaria village. PTI PD BNM
view comments
First Published:
August 11, 2025, 16:45 IST
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
a few seconds ago
- Mint
Air India cancels Milan-Delhi flight due to maintenance issue
Mumbai, Aug 17 (PTI) Tata Group-owned private carrier Air India on Sunday said it cancelled its Milan-Delhi flight of August 16 after detecting a maintenance issue at the last minute. Alternative arrangements are being made to fly the passengers to their destination at the earliest, Air India said in a statement. "Flight AI138 operating from Milan to Delhi on August 16 was cancelled due to a maintenance task identified during pushback," the statement said. "Our ground team in Milan extended immediate assistance to all the affected passengers, providing hotel accommodation and offering full refunds on cancellation or complimentary rescheduling as opted by the passengers," it said. According to Air India, along with the maintenance issue, the operating crew of the flight come under the mandatory flight duty-time limitation norms. Air India generally operates its Boeing 787-8/9 aircraft fleet to cater to European destinations. The airline, which came under private hands in January 2022, has, of late, been delaying, cancelling some flights at the last minute due to technical and maintenance issues. This is despite airline CEO and Managing Director Campbell Wilson repeatedly claiming that Air India has carried out comprehensive checks on its Boeing 787 aircraft fleet. A Delhi-bound Air India flight from Bhubaneswar was cancelled just prior to its departure on August 3 due to high cabin temperature. On July 31, an Air India Boeing 787-9 aircraft flying to London had to abort take-off at Delhi airport and return to the bay due to a technical issue. In a message to the customers recently, while listing out the various steps taken after the fatal crash of an AI-171 flight to London soon after take-off from the Ahmedabad airport, Wilson said detailed inspections of its Boeing 787-8 and 787-9 aircraft were done and "no issues were found during inspection".
India.com
a few seconds ago
- India.com
Apple India signs massive 1000 crore deal for property, located in..., deal is for...
(Image: Bengaluru: In a significant development from the silicon city of India, Apple India has signed one of the biggest office lease deals in Bengaluru in its recent towards making India one of the biggest suppliers of iPhone manufactures of the world. Taking up around 2.7 lakh sq ft of space at Embassy Group's Embassy Zenith project for a 10-year term, Apple India has taken the lease of the space at massive value of over Rs 1,000 crore, setting a new benchmark with rates touching Rs 235 per sq ft per month. Why is Apple India paying Rs 1000 crore for space in Bengaluru? As per media reports, the Apple India Rs 1000 crore deal covers nine floors (5th to 13th) with a carpet area of 1.96 lakh sq ft and includes 362 parking slots in the Prestige Estates Projects' commercial building at Prestige Minsk Square. As a part of the deal, Apple will pay Rs 6.31 crore in monthly rent with a 4.5% annual escalation and has deposited Rs 31.57 crore as security. It also has the option to lease an additional 1.21 lakh sq ft across the lower floors. Apple begins iPhone 17 production at Bengaluru plant In a significant development, Taiwanese electronics major Foxconn and Apple's key supplier started production of iPhone 17 at its new Bengaluru factory, marking a significant milestone for the facility, amid the strained India-US trade relations. With the Bengaluru factory being Foxconn's second-largest iPhone manufacturing unit outside China, the Apple iPhone manufacturing in India is expected to take a massive jump. Set up at an investment of around $2.8 billion (about Rs 25,000 crore), the Bengaluru unit, located in Devanahalli, is now operational alongside Foxconn's Chennai plant, where iPhone 17 production is also underway, a report by IANS news agency said. The report also adds that the Apple new facility had faced a brief setback earlier this year when several Chinese engineers left abruptly due to reasons that were not certain. However, left unaffected, Foxconn since managed to bring in experts from Taiwan securing India's iPhone manufacturing dreams. (With inputs from agencies)
Time of India
30 minutes ago
- Time of India
TN coconut farmers say companies and traders have formed syndicate to drive down prices
COIMBATORE: Coconut farmers, who benefited from a sharp rise in prices over the past few months, have now run into a setback. They allege that a group of major companies involved in the coconut oil trade, along with local traders, have formed a syndicate to deliberately drive down procurement prices. Tired of too many ads? go ad free now K Jothimani, a coconut farmer at Subbegoundanputhur in Anamalai taluk, said the farm-gate price of coconuts, which was around Rs 70 per kg on Aug 10, dropped to Rs 58 within a few days and increased to Rs 66 on Sunday. 'It is like gambling. In villages, small farmers with three to 10 acres sell their coconuts to local traders, who in turn supply them to bigger traders. We were forced to sell at lower prices because big traders in Kangeyam, backed by corporate companies, dictate the market,' he alleged. He added that corporates use coconuts for multiple purposes, including soap manufacturing, edible oil production and domestic consumption. 'In Kashmir, coconuts are also used in dried form, like chips,' he said. With the festival approaching in , the demand for coconut oil has surged. "The Kerala govt is planning to distribute two kilograms of coconut oil to each household under its ration scheme, requiring nearly two crore litres of oil in bulk. Since Kerala does not have sufficient copra to meet this demand, traders are procuring coconuts from at lower prices. By suddenly taking control of the market, they are pushing down prices here,' said a farmer in Pollachi.
