ICICI Bank’s Minimum Balance Hike: RBI Says ‘Not Under RBI Purview’

During his maiden visit to Gujarat on Monday, RBI Governor Sanjay Malhotra addressed recent concerns over ICICI Bank’s decision to sharply raise the minimum monthly average balance (MAB) requirement for new savings account holders. 

As per The Hindu Business Line report, while speaking to the media in Gozaria village, Mehsana district, Malhotra stated that the matter is “not part of the RBI’s regulatory domain.”

Banks Free to Set MAB; ICICI’s Sharp Hike Draws Mixed Reactions

The Governor explained that the RBI has authorised banks to decide their own minimum balance policies. “Some banks have kept it at ₹10,000, while some have done away with it altogether,” he said while attending an event organised by the State Level Bankers’ Committee (SLBC) of Gujarat, as per the news report.

The clarification comes after ICICI Bank increased the MAB for new depositors in metro and urban areas to ₹50,000, 5 times higher than the earlier ₹10,000.

Read More: ICICI Bank Raises Minimum Average Balance for New Savings Accounts Opened After Aug 1, 2025.

Conclusion

By reaffirming that banks have full discretion over their minimum balance policies, the RBI Governor has effectively put the onus on individual institutions to set customer terms. For account holders, this means staying informed about their bank’s specific requirements especially when opening new accounts to avoid penalties.

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