Banks can decide minimum balance: RBI

WHILE the Reserve Bank on Monday washed its hands off the issue of a five-fold increase in average monthly minimum balance requirement that ICICI Bank has introduced on new non-salary accounts — from ₹10,000 in rural branches to a high of ₹50,000 in metro branches from this month, saying the subject is not within the regulatory purview of the central bank. Netizens expressed their displeasure over the issue on social media platform X.

- BENN KOCHUVEEDAN @ Mumbai

Addressing a financial inclusion event in Gujarat, Governor Sanjay Malhotra on Monday told reporters, "The RBI has left it to banks to charge or not to charge a penalty on not having a minimum balance in a savings account, and so this doesn't fall under regulatory domain."

"Some banks have kept it at ₹10,000; some have it at ₹2,000, and some have even waived it off. This is not in the RBI's regulatory domain," he added.