Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Monday that banks are free to fix the minimum balance in savings accounts and it does not fall under RBI regulatory jurisdiction. He said this in a conversation with reporters during a ceremony held on financial inclusion at Gojiaia Gram Panchayat in Mehsana district of Gujarat. Asked about increasing the minimum balance required for a private bank’s savings accounts, Malhotra said, “RBI has left the decision to fix the minimum balance on each bank. Some banks have kept it Rs 10,000, some have kept Rs 2,000 and some (customers) have given exemption from it. This (RBI) is not in the regulatory jurisdiction. ”
ICICI Bank has increased
ICICI Bank has increased the minimum balance limit for those opening new savings accounts since August 1. According to the bank’s website, the minimum average monthly balance (MAB) in the savings bank account has been increased from five times to Rs 10,000 to Rs 50,000. This amount has been increased by five times for small cities and rural areas to Rs 25,000 and Rs 10,000 respectively. On the other hand, State Bank of India has decided not to punish savings account holders for not keeping the minimum balance. Malhotra said in the program that digital literacy is very important for success in the new era. He said, “Earlier it was said that if you do not study, you will not be able to progress. In today’s era, the same thing applies to digital literacy. If you do not have digital literacy, you will not be able to progress. ”
All sections of society get benefits
The RBI Governor said that whatever decisions should be taken, the person standing at the bottom of the society should benefit from the society. He said that the Pradhan Mantri Jan-Dhan Yojana was launched about 10-11 years ago for this purpose so that everyone could get access to banking services. Managing Director and Chief Executive Officer (CEO) of Bank of Baroda, Devdutt Chand said in this program that it is necessary to regularly update the ‘Know your customer’ (KYC) for Jan-Dhan accounts.
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