<h1>Banks Have Autonomy to Set Minimum Balance Rules; RBI Highlights Digital Literacy and KYC Updates</h1> The Reserve Bank of India clarified that banks have the autonomy to set minimum balance requirements for savings accounts, which is not regulated by the RBI. A private bank recently increased its minimum average monthly balance significantly, while some public sector banks have waived penalties for non-maintenance of minimum balances. The RBI emphasized the importance of digital literacy and inclusive banking, highlighting government schemes aimed at expanding financial access. Additionally, officials stressed the need for account holders to update KYC details to maintain account functionality, particularly for accounts opened under financial inclusion initiatives.