Banks Offering Zero Minimum Balance Savings Accounts: Full List Inside

### Rapid Summary
– The Reserve Bank of India (RBI) announced that banks are free to set their own minimum balance requirement for savings accounts as it does not fall under their regulatory domain.
– Minimum balance requirements vary across banks, with some imposing penalties for non-compliance to recover maintenance costs of services like ATM, mobile banking, and customer support.
– Certain government banks like State Bank of India (SBI), Punjab National Bank (PNB), and Indian Bank have eliminated minimum balance requirements for enhanced customer convenience.
– ICICI Bank recently increased its minimum average monthly balance requirement from Rs 10,000 to Rs 50,000 in savings accounts opened after August 1.

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### Indian Opinion Analysis
The RBI’s decision to let individual banks determine their minimum balance policy highlights a shift towards decentralization in financial regulations. This approach allows financial institutions the flexibility to set terms based on operational costs and customer demographics but poses the potential risk of wide cost disparity among institutions. While government banks removing the minimum balance has been a customer-kind move catering primarily to lower-income groups and rural populations, steps like ICICI’s high increase may alienate certain segments by limiting affordable banking options. The variation in policies across banks calls for heightened awareness among customers regarding terms before opening or managing accounts.

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