Minimum Bank Balance Requirements in India have changed in 2025, with ICICI Bank & HDFC Bank increasing monthly averages for new customers while Canara Bank removes them entirely.
NOW ICICI BANK REVISES DOWNWARD ON PUBLIC BACKLASH
WHILE HDFC BANK REVISES UPWARD
Dated 14.08.2025 : ICICI Bank has once again revised its minimum balance requirements for savings accounts. This revision was a reversal of a steep hike that was announced for new customers.
Here’s a breakdown of the recent events:
- Initial Hike (Effective August 1, 2025): ICICI Bank had initially increased the minimum monthly average balance (MAB) for new savings accounts. This was a significant jump, with the requirement in metro and urban areas going from ₹10,000 to a high of ₹50,000. The requirements for semi-urban and rural areas were also increased to ₹25,000 and ₹10,000 respectively.
- Public Backlash and Revision (Mid-August 2025): The steep increase drew widespread criticism from customers and the public. Following this, ICICI Bank made a swift U-turn, citing “valuable feedback” from its customers.
- New, Revised Requirements: The bank has now implemented a new, lower set of minimum balance requirements. For new savings accounts opened after August 1, 2025, the revised MAB is:
- Metro and Urban areas: ₹15,000 (slashed from ₹50,000)
- Semi-urban areas: ₹7,500 (revised from ₹25,000)
- Rural areas: ₹2,500 (revised from ₹10,000)
Important points to remember:
- This new set of rules applies only to new savings accounts opened on or after August 1, 2025.
- Existing customers who opened their accounts before this date are not affected by this change and will continue to follow their original minimum balance requirements.
- Certain types of accounts, such as salary accounts, Basic Savings Bank Deposit Accounts (BSBDA), and accounts for senior citizens/pensioners, remain exempt from these minimum balance requirements and are considered zero-balance accounts.
HDFC BANK : HDFC Bank has also revised its minimum balance requirements, and similar to ICICI Bank, this revision primarily applies to new accounts and has seen some recent clarification and changes.
- New Requirements for New Accounts: HDFC Bank has revised the minimum average monthly balance (AMB) for new savings accounts opened on or after August 1, 2025.
- Metro and Urban branches: The new AMB requirement is ₹25,000, a significant increase from the previous ₹10,000.
- Semi-urban branches: The AMB requirement has also been set at ₹25,000, which is a substantial increase from the previous ₹5,000.
- Rural branches: The new minimum is ₹10,000, up from the previous ₹5,000.
- Clarification on “Savings Max” Accounts: The bank has clarified that the ₹25,000 limit is a new standard for their regular savings accounts in urban and metro areas, which had caused some confusion with their “Savings Max” account, which already had a higher minimum balance.
- Impact on Existing Customers: HDFC Bank has stated that these new rules do not affect existing customers who opened their accounts before August 1, 2025. They will continue to follow their original minimum balance requirements.
- Exemptions: Like other banks, certain accounts remain exempt from these changes, including:
- Salary accounts
- Basic Savings Bank Deposit Accounts (BSBDA)
- Accounts for senior citizens and pensioners
This move, alongside similar actions by ICICI Bank, indicates a trend among some of the largest private sector banks to increase minimum balance requirements, potentially to focus on higher-value customers, even as many public sector banks are moving in the opposite direction by removing these stipulations entirely.
ICICI BANK INCREASES MINIMUM BALANCE REQUIREMENTS
Dated 10.08.2025 : Effective August 1, 2025, ICICI Bank dramatically increased the minimum monthly average balance (MAB) required for all new savings accounts. This change does not apply to existing customers.
The move by ICICI Bank is in contrast with that of public sector bank Canara Bank which removed all minimum balance requirements for its customers.
Here are the new minimum balance requirements for new accounts ICICI Bank :
- Metro and Urban branches: The minimum average balance has been increased from ₹10,000 to ₹50,000.
- Semi-urban branches: The requirement has been increased from ₹5,000 to ₹25,000.
- Rural branches: The minimum balance has been increased from ₹2,500 to ₹10,000.
Penalty for Non-Maintenance:
For new customers who fail to maintain the revised minimum balance, the bank will levy a penalty of 6% of the shortfall or ₹500, whichever is lower.
This move by ICICI Bank is in contrast to many other banks, especially public sector banks, which have been waiving minimum balance requirements to attract a wider customer base and promote financial inclusion. It signals a shift in ICICI Bank’s strategy towards focusing on more affluent customers.
Canara Bank Removes Minimum balance conditions for its SB (Savings Bank) accounts.
Effective June 1, 2025, Canara Bank officially converted all its savings accounts into zero-balance accounts. This means customers are no longer required to maintain a minimum balance to avoid penalties. This applies to all types of savings bank accounts, including regular, salary, and NRI accounts.
Previously, customers had to maintain an average monthly balance of ₹2,000 in urban areas, ₹1,000 in semi-urban areas, and ₹500 in rural areas, with penalties for non-compliance. These penalties have now been abolished
Many digital savings accounts in India opened by the private sector banks as well as public sector banks do not carry a minimum balance stipulation .
Canara Bank’s move to eliminate the Minimum Bank Balance requirement reflects a broader trend toward financial inclusivity.
HOW MUCH CHARGES BANKS LEVY ?
Charges levied vary from bank to bank . The charges for non-maintenance generally vary based on:
- Bank Policy: Each bank sets its own charges, approved by its board.
- Account Type: Different savings account variants within the same bank might have different minimum balance requirements and associated penalties.
- Location (Metro/Urban/Semi-Urban/Rural): Banks typically have lower minimum balance requirements and, consequently, lower penalties for branches in semi-urban and rural areas compared to urban and metro areas.
- Shortfall Amount: The penalty is often linked to the extent of the shortfall from the required minimum balance. This is in line with RBI guidelines which state that penal charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance.
The penalty for not maintaining the Minimum Bank Balance varies significantly across banks.
General Range of Charges (Illustrative, as of current information):
Based on available information for banks that still charge, here’s a general idea of what you might expect:
Public Sector Banks (for accounts that still charge):
- Charges could range from ₹25 to ₹250 per month/quarter, depending on the shortfall and location.
- For example, Punjab National Bank (PNB) has been reported to charge:
- Rural Areas: around ₹400
- Semi-Urban Areas: around ₹500
- Urban/Metro Areas: around ₹600 (These figures might be for specific periods or maximums, as PNB’s charges can vary based on the deficit in the quarterly average balance, ranging from Rs.25 to Rs.250).
- Bank of Baroda lists charges as “6% of actual shortfall amount on a monthly basis” subject to a maximum and minimum, for example:
- Metro & Urban: Max. ₹120, Min. ₹1
- Semi-Urban: Max. ₹60, Min. ₹1
- Rural: Max. ₹30, Min. ₹1
- Public sector banks often set different Minimum Bank Balance rules for metro, urban, and rural areas.
Private Sector Banks:
- Often have higher minimum balance requirements and potentially higher charges.
- HDFC Bank: Penalties can range from ₹150 to ₹600 per month, plus taxes, depending on the shortfall and location (e.g., ₹600 for a large shortfall in metro/urban areas where the AMB requirement is ₹10,000). The charge is typically 6% of the shortfall or a maximum amount, whichever is lower.
- ICICI Bank: Charges can be ₹100 plus 5% of the shortfall in the required Monthly Average Balance (MAB) for metro/urban/semi-urban/rural locations. For “gramin” locations, it might be 5% of the shortfall.
- Axis Bank: For accounts that aren’t zero-balance, charges can range from ₹50 to ₹600, again varying by location and shortfall.
- IndusInd Bank: Might charge 5% of the total shortfall, subject to a monthly maximum of ₹500 and a minimum of ₹100.
- YES Bank: Penalties can be structured as a percentage of the shortfall (e.g., 5% or 10% of the shortfall depending on the extent) or a fixed amount like “up to ₹500 per month
- Private banks usually have higher Minimum Bank Balance requirements compared to PSBs.
Examples of Zero-Balance Digital Savings Accounts:
- Kotak 811 Digital Savings Account: One of the pioneers and most popular zero-balance digital accounts.
- IndusInd Bank’s Indus Delite Savings Account: Another prominent zero-balance digital offering.
- IDFC FIRST Bank’s Digital Savings Account: Offers zero fees for many common services and often zero balance.
- Federal Bank’s FedSelfie Account: A digital zero-balance account.
- Union Bank of India’s Union Digital Savings Account: A public sector bank offering a digital zero-balance option.
- India Post Payments Bank (IPPB) DigiSmart Savings Account: Specifically states “No Monthly Balance Requirement.”
- RBL Bank’s Go Digital Savings Account is explicitly marketed as a zero-balance account.
Many digital savings accounts offer the benefit of zero Minimum Bank Balance, making them ideal for low-income groups.
In summary: If you are looking for a savings account without minimum balance worries, a digital savings account is often your best bet. However, always verify the specific terms and conditions for the particular digital account you are interested in from the bank’s official website
Choosing an account with no Minimum Bank Balance requirement helps avoid penalties and maintain financial flexibility.
Always read the terms related to Minimum Bank Balance before opening any savings account.
- RBI official page on Minimum Balance Guidelines (https://rbi.org.in)
- ICICI Bank official charges page (https://www.icicibank.com)
- Canara Bank official notice on zero-balance accounts (https://www.canarabank.com)
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