Banks free to set savings accounts minimum balance: RBI

Reserve Bank of India (RNI) governor Sanjay Malhotra said on Monday banks are free to decide the minimum balance for savings accounts and that it does not fall under the regulatory domain of the central bank.

- PTI [e-mail]

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 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 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 sector lender ICICI Bank increased the minimum balance requirement for those opening new savings accounts from 1 August.