Minimum Balance Rules: ICICI Bank vs SBI vs Bank Of Baroda vs PNB vs Other PSU Banks — Details Here

ICICI Bank has significantly raised its minimum average monthly balance requirements for savings accounts. These changes came into effect from Aug. 1 for the new savings account. The private lender has increased the minimum balance requirements to Rs 50,000 per month, from Rs 10,000 earlier, for customers across its metro and urban branches.

In semi-urban areas, the new limit is Rs 25,000, while rural customers are required to maintain a minimum average monthly balance of Rs 10,000.

However, existing customers, salary accounts, Jan Dhan accounts and basic savings accounts are exempt from this hike in minimum balance. The bank has also clarified that it is trying to position itself as the primary bank for its customers, not just an account for small balances.

Customers will be penalised 6% of the shortfall or Rs 500, whichever is lower, if the minimum balance isn't maintained, according to the rules. The hike applies to customers who wish to open their bank accounts with the lender from Aug. 1.

This has prompted potential customers to consider alternative banks for their savings account needs as they look for more affordable banking options.

In contrast, other private lenders such as HDFC Bank, Axis and Kotak Mahindra Bank have much lower minimum balance account requirements.

On the other hand, leading public sector banks such as the State Bank of India (SBI), Punjab National Bank (PNB) and others are still offering zero-balance savings accounts. For instance, both SBI and PNB are offering zero-balance savings accounts across their branches in urban, semi-urban and rural areas.

Public sector lender Bank of Baroda offers its savings account with a requirement of maintaining a minimum monthly average balance of Rs 2,000 in urban areas, Rs 1,000 in semi-urban areas and Rs 500 in rural regions. Canara Bank also follows an identical minimum balance requirement across all its branches, irrespective of the regions.

Bank of Maharashtra also requires its savings account customers to maintain a minimum balance. On the other hand, Union Bank requires customers to maintain an average quarterly balance in their savings accounts. For metro and urban branches, it's Rs 1,000. In semi-urban branches, the requirement is Rs 500, and in rural branches, the customers are required to maintain a minimum balance of Rs 250 per month.