Banks in India require customers to maintain a minimum balance in their savings accounts, depending on the type of account and the branch’s location. Falling below this threshold often attracts penalty charges. Recently, ICICI Bank significantly increased its requirements, prompting many to check how much their own bank expects them to keep.

ICICI Bank’s New Minimum Balance Rules

From August 1, 2025, ICICI Bank raised the minimum monthly balance for new savings accounts in metro and urban branches to ₹50,000 — up from ₹10,000 earlier.

• Semi-Urban branches: ₹25,000 (earlier ₹5,000)
• Rural branches: ₹10,000 (earlier ₹5,000)

Minimum Balance Requirements at Major Indian Banks

• HDFC Bank:
  • Metro/Urban: ₹10,000 or FD of ₹1 lakh (1 year + 1 day)
  • Semi-Urban: ₹5,000 or FD of ₹50,000
  • Rural: ₹2,500 quarterly or FD of ₹25,000
• State Bank of India (SBI):
  • Zero minimum balance for all savings accounts.
• Kotak Mahindra Bank:
  • ₹10,000–₹20,000 depending on account type; 6% penalty on shortfall.
• Axis Bank:
  • ₹10,000 monthly for all locations, or FD of ₹50,000; priority accounts require ₹2 lakh.
• Bank of Baroda:
  • Metro: ₹2,000 quarterly
  • Semi-Urban: ₹1,000 quarterly
  • Rural: ₹500 quarterly
• Punjab National Bank (PNB):
  • Metro: ₹10,000 monthly
  • Urban: ₹5,000 monthly
  • Semi-Urban: ₹2,000 monthly
  • Rural: ₹1,000 monthly
• Union Bank of India:
  • Metro/Urban: ₹1,000 quarterly
  • Semi-Urban: ₹500 quarterly
  • Rural: ₹250 quarterly
• Canara Bank:
  • No minimum balance requirement (waived for all accounts).
• IDBI Bank:
  • Metro/Urban: ₹10,000
  • Semi-Urban: ₹5,000
  • Rural: ₹2,500
  • FI Rural branches: ₹1,000
• Indian Bank:
  • With cheque facility: Metro/Urban ₹2,500; Semi-Urban/Rural ₹1,000
  • Without cheque facility: Metro/Urban ₹1,000; Semi-Urban/Rural ₹500
• Yes Bank:
  • Basic accounts: Zero minimum balance
  • PRO account: ₹10,000 monthly
  • PRO Plus account: ₹25,000 monthly (or FD of 5× MAB)

Why It Matters

The minimum balance rule helps banks maintain liquidity but can be a burden for customers if requirements are steep. Always check your bank’s policy and choose an account that aligns with your usage and financial comfort to avoid unnecessary penalties.

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