ICICI Bank has raised the average minimum balance requirement for new savings accounts opened after August 1, increasing it to Rs 50,000 from Rs 10,000. This drastic five-fold hike comes at a time when many public sector banks are eliminating minimum balance requirements, prompting widespread criticism of the move. While the bank has not directly commented on the decision, its website outlines the new criteria: semi-urban locations will now require a minimum balance of Rs 25,000, while rural areas will set a lower threshold at Rs 10,000. The last time ICICI Bank adjusted its minimum balance requirement was over a decade ago, during which time the per capita income has more than doubled.
Customers who fail to maintain the minimum balance will face a penalty of Rs 500 or 6% of the discrepancy between the required and actual balance. Many industry insiders expressed confusion over this strategic shift, suggesting it seems aimed at filtering out low-value customers-a tactic typically associated with multinational banks constrained by the ability to serve numerous clients due to branch limitations. Observers also find the timing unusual since CEO Sandeep Bakhshi has maintained a relatively low-profile leadership style since taking over in 2018, initially focusing on risk management, product innovation, and a broader digital presence.
Interestingly, sources indicate that certain types of accounts, such as basic savings accounts and salary accounts, will continue to be offered without any minimum balance requirement. The aim of these adjustments is to boost the proportion of funds held in current and savings accounts while lessening operational costs. Additionally, the newly designed savings accounts will feature several waived charges that previously applied to regular savings accounts, presenting potential benefits for customers despite the heightened minimum balance requirement.
Original Source: https://timesofindia.indiatimes.com/business/india-business/icici-bank-hikes-min-balance-for-savings-a/cs-from-rs-10k-to-rs-50k/articleshow/123210827.cms
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Publish Date: 2025-08-10 01:55:00
