Minimum Balance Rules: RBI Leaves It to Banks, Here’s What You Should Know

India’s banking regulator, the Reserve Bank of India (RBI), has clarified that it does not control the minimum balance rules for savings accounts.

Speaking on August 11, 2025, RBI Governor Sanjay Malhotra said it’s up to each bank to decide the minimum balance requirement and the penalties for not meeting it.

What Did the RBI Say on Minimum Balance Rules?

RBI Governor Malhotra said the minimum balance policy is not under RBI's regulatory domain. While some banks have set it at ₹10,000, others allow zero-balance accounts. “It’s the bank’s call,” he said during a financial event in Gujarat.

Minimum Balance Rules At Public vs Private Sector Banks

Public Sector Banks

Banks like SBI, Canara Bank, PNB, and Indian Bank do not charge any penalty for not maintaining a minimum balance in savings accounts.

Private Sector Banks

On the other hand, private banks still charge fees if you don’t meet the required Average Monthly Balance (AMB). Let’s look at their policies:

ICICI Bank

• Metro/Urban: ₹50,000
• Semi-urban: ₹25,000
• Rural: ₹10,000
• Penalty: 6% of the shortfall or ₹500 (whichever is lower)

HDFC Bank

• Urban: ₹10,000 or FD of ₹1 lakh
• Semi-urban: ₹5,000 or FD of ₹50,000
• Rural: ₹2,500 or FD of ₹25,000
• Penalty: 6% of shortfall or up to ₹600

Kotak Mahindra Bank

• Offers zero-balance via 811 Account
• Other accounts require ₹2,000–₹1,00,000
• Penalty: 6% of shortfall, max ₹600

Axis Bank

• Semi-urban/Rural: ₹10,000 or FD of ₹50,000
• Penalty: ₹6 per ₹100 shortfall, max ₹300 (rural ₹150)

IndusInd Bank

• Zero balance available for ‘Delite’ account
• Others: ₹1,500 to ₹50,000
• Penalty: 6–10% of shortfall, min ₹150, max ₹900

IDFC FIRST Bank

• Some accounts have no AMB requirement
• Others: ₹10,000–₹25,000
• Penalty: 6% of shortfall or ₹500

Yes Bank

• AMB: ₹2,500–₹50,000 based on account type
• Penalty: 5–10% of shortfall, max ₹1,000

Read more: FIIs and DIIs Boost Stakes in Nifty 50 Stocks in June 2025: Asian Paints, Zomato, Cipla and More.

Conclusion

The RBI has made it clear: banks are free to decide their own minimum balance policies. So while public banks may be more lenient, private banks often impose strict AMB rules and penalties. Choose your bank wisely, and always keep track of your account balance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.