Just days after ICICI Bank significantly increased the minimum monthly average balance (MAB) requirement for new savings account holders, Reserve Bank of India (RBI) Governor Sanjay Malhotra clarified that such decisions fall outside the central bank’s regulatory scope.
During his first official visit to Gujarat on Monday, Malhotra addressed the issue, saying, “RBI has allowed banks the flexibility to set their own minimum balance requirements. Some banks maintain it at ₹10,000, while others have eliminated it altogether. This is not under the RBI’s regulatory purview.”
He made the remarks while speaking to the media at Gozaria village in Mehsana district, where he attended an event organized by the State Level Bankers’ Committee (SLBC) of Gujarat.
The issue gained public attention after ICICI Bank hiked the MAB for new savings accounts. For customers in metro, urban, and semi-urban areas, the minimum balance was raised fivefold—from Rs.10,000 to Rs. 50,000 and from Rs. 5,000 to Rs. 25,000, respectively.
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