ICICI Bank hikes minimum balance for new accounts; customers slam ‘elitist’ move
New metro and urban ICICI customers must now maintain a minimum average balance of Rs 50,000; bank also revises service charges for cash transactions
ICICI Bank, India’s second-largest lender, has raised the minimum monthly average balance (MAB) for new savings accounts opened from August 1 onwards.
The revision applies to all accounts opened on or after that date, making ICICI the domestic bank with the highest MAB requirement in the industry.
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ICICI hikes minimum balance
According to the bank’s official website, the hike affects customers across metro, urban, semi-urban, and rural branches.
Under the revised structure, customers in metro and urban locations must now maintain an MAB of Rs 50,000, a steep jump from the current Rs 10,000.
For new customers in semi-urban locations, the MAB will rise from Rs 5,000 to Rs 25,000, while rural customers will have to maintain Rs 10,000, up from Rs 2,500.
The minimum average balance remains at Rs 5,000 a month for old customers in rural and semi-urban areas.
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'Elitist' move
Customers failing to maintain the required MAB will face a penalty of 6 per cent of the shortfall in the required MAB or Rs 500, whichever is lower.
The sharp MAB increase has sparked criticism on social media, with several users accusing the bank of “filtering customers” based on wealth. Some labelled the move “elitist,” while others called on the Reserve Bank of India (RBI) to intervene.
Banks generally impose minimum balance rules to meet operational costs and fund investments. Customers falling below the required balance are subject to penalty fees. ICICI has urged account holders to check their balances to avoid such charges.
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New service charges
Alongside the MAB revision, ICICI Bank has also updated its service charges for cash transactions.
The bank now allows three complementary cash deposits free of cost per month into savings accounts. There is a total monthly limit of Rs 1 lakh for free deposits.
Beyond this, charges of Rs 150 per transaction or Rs 3.50 per Rs 1,000 deposited (whichever is higher) will apply.
Additionally, third-party cash deposits will be capped at Rs 25,000 per transaction.