Minimum Balance Rules: ICICI Bank vs SBI vs Bank Of Baroda vs PNB vs Other PSU Banks — Details Here
Failing to maintain a minimum balance in the savings account typically leads to penalties from the lenders.
ICICI Bank has revised its minimum balance requirements for new savings accounts across different regions, following a heavy backlash from customers. For metro and urban customers, the minimum balance requirement has been reduced from Rs 50,000 to Rs 15,000, according to a statement released by the lender on Wednesday.
Similarly, for new semi-urban account holders, the requirement has been lowered from Rs 25,000 to Rs 7,500. Rural customers will now need to maintain a minimum average monthly balance of Rs 2,500, down from Rs 10,000 earlier. The changes were announced days after the bank significantly hiked its minimum balance requirement in a bid to become a "primary" bank for its customers' needs.
The new rules came into effect from Aug. 1. However, the bank revised the minimum balance requirement criteria again on Aug. 13.
Failing to maintain a minimum balance in the savings account typically leads to penalties from the lenders. While some lenders do not have minimum balance requirements, others, like ICICI Bank, have set certain criteria for customers.
This led to a backlash against the lender as many people raised questions about convenience and financial inclusion.
This move 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.
Minimum Balance In PSU Banks
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.
