Latest news with #FinancialInclusionSaturationDrive
Hans India
2 days ago
- Business
- Hans India
Banks only decide on minimum a/c balance: Guv
Gozaria (Guj): Reserve Bank of India (RBI) 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 Rs10,000, some have kept Rs2,000 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 Rs50,000 from Rs10,000 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 Rs25,000 and Rs10,000, respectively. Incidentally, the State Bank of India has decided not to penalise savings account holders if they do not keep minimum balance. Traditionally, public-sector banks have lower balance requirements compared to private lenders with the requirement waived for Jan Dhan accounts. Several public-sector banks have done away with the requirement, and customers who fail to maintain the minimum prescribed balance do not need to pay a penalty. 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.
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Business Standard
2 days ago
- Business
- Business Standard
Banks free to decide on minimum balance for savings accounts: RBI Guv
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 ₹ 10,000, some have kept ₹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 ₹ 50,000 from ₹ 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 ₹ 25,000 and ₹ 10,000, respectively. Incidentally, the State Bank of India has decided not to penalise savings account holders if they do not keep minimum balance. Traditionally, public sector banks have lower balance requirements compared to private lenders with the requirement waived for Jan Dhan accounts. Several public sector banks have done away with the requirement, and customers who fail to maintain the minimum prescribed balance do not need to pay a penalty. 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.
Mint
3 days ago
- Business
- Mint
Can banks decide minimum balance requirement for savings accounts? Here's what RBI Governor Sanjay Malhotra said
India's banking regulator, the Reserve Bank of India (RBI) Governor Sanjay Malhotra, on Monday, 11 August 2025, said that the banks in India have the freedom to decide the minimum balance requirement for customers to maintain their savings deposit account, as its does not fall under the regulator's domain, reported the news agency PTI. Malhotra said that some banks have kept their minimum balance requirement at ₹ 10,000, while some have kept it at ₹ 2,000, and it's up to the individual banks to decide how much of a minimum account balance (MAB) they fix for their customers. 'The RBI has left it to individual banks to decide on what minimum balance they want to set. Some banks have kept it at ₹ 10,000, some have kept ₹ 2,000, and some have exempted (customers). It is not in the regulatory domain (of RBI),' said Governor Malhotra on the sidelines of a 'Financial Inclusion Saturation Drive' event in Gujarat's Mehsana district. Malhotra's response comes as India's second-largest bank, ICICI Bank, increases its minimum account balance requirement to ₹ 50,000 per month for new savings accounts opened from 1 August 2025. The minimum account balance or minimum balance requirement is the lowest amount a customer can keep in their savings account to avoid a monetary penalty from the institutional lender. Every bank has its individual requirements mandated for its customers based on the type of savings account and the location of the branch in India. The minimum balance requirement for a bank's branch in the Metro and Urban region is significantly higher than that of the Semi-Urban, Rural, or Rural Fi (Rural Financial Inclusion) branches. Mint reported earlier that ICICI Bank increased its minimum balance requirement for the metro and urban region branches to ₹ 50,000 per month, compared to its previous levels of ₹ 10,000 per month for a savings account. For the bank's semi-urban branches, ICICI Bank increased the minimum account balance requirement to ₹ 25,000 per month and ₹ 10,000 per month for the rural branches, compared to the previous level of ₹ 5,000 each, every month. India's State-run banks offer lower minimum balance requirements, as compared to the private banks, except for the Jan Dhan accounts. However, many PSU banks have removed the minimum account balance requirement, which gives customers the flexibility to not maintain a balance in their accounts in order to prevent charges. RBI Governor Sanjay Malhotra also emphasised the need for digital literacy in India, and said that opening bank accounts is just the beginning, and people should use various schemes given by the government to their own benefit. '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,' said Malhotra, cited in the agency report. '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, cited the news agency.
News18
3 days ago
- Business
- News18
Banks free to decide on minimum balance for savings accounts: RBI Guv
Agency: 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.
