ICICI Bank Increases Minimum Account Balance Requirement for New Customers from Rs 10,000 to Rs 50,000.
In a recent update, ICICI Bank has adjusted the minimum average balance (MAB) requirements for its savings accounts, effective from August 1, 2022. The changes were made following customer feedback, which led to a reduction from higher previous amounts.
For customers residing in metro and urban locations, the MAB has been set at Rs 15,000. In semi-urban areas, the MAB is Rs 7,500, while for rural customers, it stands at Rs 2,500.
It is important to note that these new figures represent a decrease from the previously proposed amounts, which were Rs 50,000 for metro/urban, Rs 25,000 for semi-urban, and Rs 10,000 for rural areas. However, these higher levels will come into effect from 2025.
Customers who fail to maintain the required MAB will be levied a penalty. The penalty amount will be 6% of the shortfall or Rs 500, whichever is lower.
In addition to the MAB adjustments, ICICI Bank has introduced a third-party cash deposit fee of Rs 25,000 per transaction for all savings accounts. After the third deposit, each subsequent transaction will cost Rs 150.
The bank has also made some positive changes for its customers. For instance, the number of complementary cash withdrawal transactions per month remains three for ICICI Bank savings accounts. Moreover, the bank now allows three complementary cash deposits free of cost into your savings account.
It is worth mentioning that the interest rate on ICICI Bank savings accounts with deposits up to Rs 50 lakh has been reduced by 0.25 per cent. The new rate now stands at 2.75 per cent.
Previously, State Bank of India (SBI) had scrapped the minimum balance rule in 2020, a move that was not followed by ICICI Bank until these recent changes.
When compared to other banks, ICICI Bank's MAB requirements are relatively high. Most other banks maintain significantly lower thresholds for minimum average balance, typically between Rs 2,000 and Rs 10,000.
[1] Source: ICICI Bank's official statement [2] Source: The Economic Times, August 2022 [3] Source: Business Standard, August 2022 [4] Source: Moneycontrol, August 2022 [5] Source: Livemint, August 2022
- The adjustments in ICICI Bank's savings account minimum average balance (MAB) are a part of their ongoing business strategies, as seen in their recent update.
- In the business world of banking, ICICI Bank's MAB requirements are comparatively higher than those of most other banks, with lower thresholds typically set by competitors.
