Minimum Balance Rules: ICICI Bank, a large private sector bank, recently took a decision regarding the minimum average balance. However, within a few days, it has withdrawn its old decision. Earlier, the bank had fixed a MAB of Rs 50,000 in metro and urban areas for those opening new accounts, which was strongly opposed by the customers. After criticism, the bank has now implemented a new rule, which has made banking services somewhat easier for the middle class.
Minimum Balance Rules: While government banks like SBI, PNB and Canara Bank are giving relief to customers by eliminating the condition of MAB, private sector banks like ICICI, HDFC and Axis still keep the condition of maintaining a minimum balance. In such a situation, customers must check the MAB policy of their bank before opening an account. So that, penalty can be avoided.
ICICI Bank’s new rule
According to the new change, the minimum average balance for urban and metro cities will be Rs 15,000. It has been fixed at Rs 7,500 in semi-urban areas and Rs 2,500 in rural branches. However, this limit is still higher than many banks, which have reduced or removed the minimum balance condition.
Rules of other banks
SBI, the country’s largest public sector bank, had completely removed the minimum balance condition from all savings accounts in rural and metro in 2020 itself. Punjab National Bank (PNB) and Canara Bank had also decided not to keep MAB and not to impose penalty for all savings accounts. This gave great relief to crores of account holders.
In rural areas, SBI and PNB have completely abolished the minimum balance condition, that is, the account can run here even with zero balance. In Union Bank, if you have a checkbook, then it is necessary to keep Rs 250 and without a checkbook, only Rs 100. HDFC Bank requires a minimum balance of Rs 2,500 for rural accounts, while ICICI Bank requires a minimum balance of Rs 2,500 to Rs 7,500 in rural areas. Axis Bank demands a minimum balance of Rs 2,500 in rural branches, Bank of Baroda Rs 500 and IDFC First Bank Rs 10,000 or Rs 25,000.
SBI and PNB do not have this condition even in urban or metro areas and the account remains active even with zero balance. Union Bank requires a minimum balance of Rs 1,000 with cheque book and Rs 500 without cheque book. It is mandatory to maintain a minimum balance of Rs 10,000 in HDFC Bank, Rs 15,000 in ICICI Bank and Rs 12,000 in Axis Bank. Whereas, in Bank of Baroda this amount is Rs 2,000 and in IDFC First Bank a balance of Rs 10,000 or Rs 25,000 has to be maintained.
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