Minimum Balance Rule– SBI had completely removed the minimum balance requirement from both urban and rural savings accounts in 2020. ICICI Bank has set a minimum balance of ₹50,000 for new savings accounts across cities, which could be a challenge for income earners. This rule will come into effect from August 1, 2025.
ICICI’s minimum monthly average balance has been raised to Rs 25,000 at semi-urban branches and Rs 10,000 at rural branches, up from Rs 5,000 and Rs 5,000 respectively earlier. If ICICI Bank customers do not maintain the prescribed minimum balance, they will have to pay a penalty of 6% on the shortfall amount and a maximum of Rs 500.
Meanwhile SBI completely removed the minimum balance requirement from both urban and rural savings accounts in 2020, providing great relief to customers.
Other hand India’s one of the big bank Punjab National Bank and Canara Bank have also abolished the penalty for not maintaining minimum balance, benefiting savings account holders.
Union Bank of India requires a minimum balance of Rs 250 at rural branches and Rs 1,000 at urban branches, while these limits are lower without a chequebook. The country’s largest private bank, HDFC Bank, asks for a minimum balance of Rs 2,500 in rural branches and Rs 25,000 in urban branches, which is much lower than ICICI. The minimum balance in IDFC First Bank ranges from Rs 10,000 to Rs 25,000, depending on the category the account falls under.