New Bank Rules 2025: SBI, ICICI, HDFC, Axis & More; Minimum Balance & Penalties You Must Know

Minimum balance requirements for savings accounts are now a hot topic of discussion for Indian bank customers, and recent announcements by ICICI Bank regarding the increase in the monthly average balance to Rs. 50000 for metro locations have raised eyebrows. However, after major backlash, the bank rolled back its decision and reduced the revised average balance (MAB).

ICICI Bank Minimum Balance Rule Revised

As of the update dated 13th August, ICICI Bank has lowered its monthly average balance for new savings accounts in metro and urban locations from Rs. 50,000 to Rs. 15,000 after receiving strong customer feedback.

• Metro & Urban Branches: Rs. 15,000 MAB (earlier Rs. 50,000 for existing customers)
• Semi-Urban Branches: Rs. 7,500 MAB
• Rural Branches: Rs. 2,500 MAB
• Special Categories: Pensioners below 60 years, students from 1,200 select institutes - Nil MAB

Minimum Balance for Top Private Sector Banks:

Here are the minimum balance requirements along with the penalty rules of the banks in India:

Kotak Mahindra Bank

Kotak Mahindra Bank mandates a minimum balance between Rs. 10,000 and Rs. 20,000 depending on the savings account type. Customers failing to meet the requirement face a 6% penalty on the shortfall, capped at Rs. 500 per month.

Yes Bank

Yes Bank's basic savings deposit account has no minimum balance requirement. However, regular savings accounts require Rs. 10,000 per month, and the PRO Plus account requires Rs. 25,000 per month. Customers can also opt to maintain a fixed deposit worth five times the MAB instead.

HDFC Bank

HDFC Bank requires customers to maintain a monthly average balance of Rs. 10,000 in urban branches, Rs. 5,000 in semi-urban, and Rs. 2,500 in rural branches (quarterly). Customers can also meet the requirement by holding an eligible fixed deposit.

ICICI Bank

After public backlash over a steep hike, ICICI Bank has revised its MAB down to Rs. 15,000 for metro/urban branches (from the earlier Rs. 50,000), Rs. 7,500 for semi-urban branches, and Rs. 2,500 for rural. The penalty for non-compliance is 6% of the shortfall or Rs. 500, whichever is lower.

Axis Bank

Axis Bank's requirement is Rs. 10,000 per month across all locations, or a Rs. 50,000 fixed deposit with a tenure of at least 12 months. Priority accounts have significantly higher minimum balances.

Public Sector Banks

Most major PSU banks have scrapped minimum balance requirements for regular savings accounts in 2025. to improve banking access for low-income customers

State Bank of India (SBI): No MAB since 2020.

Punjab National Bank (PNB): Waived requirement in July 2025.

Bank of Baroda (BoB) - Waived requirement from July 1, 2025.

Indian Bank - Removed MAB from July 7, 2025.

Canara Bank - No MAB since May 2025.

Bank of India - No penalty for low balances.

Other Major Banks

IDBI Bank

MAB requirements are Rs. 10,000 for metro/urban, Rs. 5,000 for semi-urban, Rs. 2,500 for rural, and Rs. 1,000 for rural FI branches.

Union Bank of India

Requires a quarterly average balance of Rs. 1,000 for metro/urban, Rs. 500 for semi-urban, and Rs. 250 for rural branches.

Indian Bank

For accounts with cheque facilities: Rs. 2,500 in metro/urban and Rs. 1,000 in semi-urban/rural. Without check facilities: Rs. 1,000 in metro/urban and Rs. 500 in semi-urban/rural.