New banking regulations on money deposit limits, minimum balances, and premium account eligibility will take effect from 1 October 2025, impacting customers of YES Bank and HDFC Bank. ICICI Bank has also recently introduced stricter minimum balance norms.
Key Updates on Bank New Rules from October 1
Several leading private banks are tightening rules to manage liquidity and improve profitability. The Bank New Rules from October 1 will affect both merchant account holders and premium banking customers.
According to official notifications, YES Bank has revised conditions for its Merchant Easy and Merchant Prime accounts, while HDFC Bank has updated eligibility norms for its premium Imperia program. ICICI Bank, though outside the October timeline, recently raised minimum balance requirements, signalling a wider industry trend.
YES Bank: New Deposit and Minimum Balance Rules
Cash Deposit Limits
YES Bank will impose new thresholds on free cash deposits:
- Merchant Easy: Free deposits up to 12 times the previous month’s average monthly balance (AMB), capped at ₹1.5 crore.
- Merchant Prime: Free deposits up to 15 times AMB, capped at ₹5 crore.
Deposits beyond these limits will attract a fee of ₹4 per ₹1,000, with a minimum charge of ₹50 per transaction. Small denomination notes (₹50 and below) exceeding ₹10,000 will face a 2% fee. Coin deposits will remain free up to ₹1,000 per month, with a 5% charge above that.
Minimum Balance and Penalties
- Merchant Easy: AMB requirement of ₹25,000.
- Merchant Prime: AMB requirement of ₹50,000.
Failure to maintain balances will result in penalties of ₹250, increasing to ₹500 if the shortfall exceeds half the required AMB.
HDFC Bank: New Imperia Eligibility Criteria
From 1 October, HDFC Bank will expand its Imperia program eligibility. Customers may now qualify by maintaining a Total Relationship Value (TRV) of at least ₹1 crore.
TRV is calculated across savings accounts, fixed deposits, mutual funds, insurance premiums, loans, and demat holdings. Existing pathways remain, including:
- A quarterly current account balance of ₹15 lakh.
- A monthly savings account balance of ₹10 lakh.
- Combined deposits of ₹30 lakh across savings, current, and fixed deposits.
A senior HDFC Bank spokesperson told Business Standard that the TRV threshold reflects “the evolving profile of affluent customers and the need to offer bundled services across multiple financial products.”
ICICI Bank: Higher Minimum Balance Norms Already in Force
Although effective since 1 August 2025, ICICI Bank’s revised rules are central to the broader conversation. The bank now requires new customers to maintain higher balances:
- Metro and urban branches: ₹50,000 (previously ₹10,000).
- Semi-urban: ₹25,000 (previously ₹5,000).
- Rural: ₹10,000 (previously ₹2,500).
The move has sparked criticism. Jay Kotak, Vice President of Kotak 811, argued that the policy “will disproportionately affect middle-class savers, who already face rising costs.”
The Reserve Bank of India (RBI) clarified that such decisions are left to individual banks, rather than imposed by central regulation.
Why Banks Are Tightening Rules
Banking experts suggest that rising operational costs, increased digital transaction volumes, and competition in the premium segment are driving these changes.
Professor Anupam Mittal of the Indian Institute of Management (IIM) Bangalore noted that “private banks are targeting higher-value customers for cross-selling opportunities, while simultaneously disincentivising low-balance accounts that strain profitability.”
At the same time, the changes could limit financial access for lower-income groups, prompting debate on inclusivity versus efficiency.
What Customers Should Do
- YES Bank merchants should reassess deposit patterns to avoid new penalties.
- HDFC Bank clients aiming for Imperia benefits must evaluate whether TRV requirements are achievable.
- ICICI Bank account holders should verify their minimum balance obligations, especially if opening new accounts.
Financial planners recommend reviewing alternatives across public and private banks, many of which continue to offer lower balance thresholds and fewer restrictions.
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Conclusion
The Bank New Rules from October 1 highlight a tightening environment in Indian banking, where institutions seek to balance profitability with customer retention. While the measures may strengthen banks’ financial positions, they also raise questions about accessibility and the burden on everyday account holders.
