India’s second largest private lender will now require its bank account holders to maintain a minimum monthly average balance of ₹15,000 as against ₹50,000 proposed just days ago, according to a new notification seen by Hindustan Times.
Notification and Customer Feedback
“We had introduced new requirements for the monthly average balance for new savings accounts opened from 1 August 2025,” the bank said in the notification released on Wednesday, “Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences.”
The revision comes after customers expressed concerns over the earlier proposal, which would have significantly increased the minimum balance amount. Analysts suggest that the bank’s move reflects a growing sensitivity among lenders to public sentiment, especially amid rising living costs.
Revised Minimum Balance Structure
Therefore the minimum balance levels are:
- For metro and urban areas: ₹15,000
- For semi-urban areas: ₹7,500
- For rural areas: ₹2,500
Bank officials mentioned that these new limits strive to balance fairly between operating needs and customer convenience. The previous proposal of ₹50,000 for metropolitan and urban areas was being criticized by customers and financial analysts in large numbers, who claimed that it would burden low- and middle-class account holders heavily.
Pensioners under the age of 60 years and students of 1,200 select institutions are not required to maintain a minimum monthly average balance. The waiver is likely to provide relief to thousands of people, mostly those engaged in education and retired life, who tend to live on fixed or tight budgets.
Industry Context
Finance industry players think the amendment can spur other private and public banks to review their own minimum balance levels. In the last few years, there has been a shift towards lowering balance requirements to lure new clients, particularly within the competitive urban banking sector.
Through this change, the bank aims to maintain customer confidence while its cost of operations and service delivery is to be funded sustainably.
