After ICICI Bank, HDFC Bank Raises Minimum Balance Limit for Savings Accounts; Charges to Apply if Balance Drops Below ₹25,000
After ICICI Bank, HDFC Bank Raises Minimum Balance Limit for Savings Accounts; Charges to Apply if Balance Drops Below ₹25,000
Rule applies to metro and urban branches for accounts opened after August 1, 2025; ICICI Bank recently made similar changes
In a move likely to impact thousands of new customers, HDFC Bank has increased the minimum balance requirement for savings accounts in metro and urban branches from ₹10,000 to ₹25,000. The change applies only to accounts opened on or after August 1, 2025.
According to a media report, the decision follows similar changes announced by ICICI Bank, which last week raised its minimum average monthly balance for metro and urban accounts from ₹10,000 to ₹50,000 for new customers.
Penalty for Non-Compliance
HDFC Bank officials confirmed that customers who fail to maintain the required balance will face penalty charges. The new rule will not affect existing customers, who can continue under their current account terms. The bank says the increase will “help improve the quality of services” by strengthening deposit inflows.
ICICI Bank’s Steeper Hike
ICICI Bank’s revised rules also take effect from August 1, 2025. For semi-urban branches, the MAMB has been raised from ₹5,000 to ₹25,000, and in rural areas from ₹5,000 to ₹10,000. Salary accounts and Basic Savings Bank Deposit Accounts (BSBDA) remain exempt from minimum balance requirements.
Private vs. Public Sector Trend
While private banks are tightening minimum balance norms, public sector banks have been moving in the opposite direction, removing or reducing such requirements to attract more account holders.
With two of India’s largest private banks now raising thresholds significantly, experts say other lenders could follow suit in the coming months, potentially affecting banking accessibility for low-income customers in urban areas.
