Has ICICI Bank Lowered Minimum Average Balance Requirements?
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Synopsis
In a bold move to address customer dissatisfaction, ICICI Bank has slashed its minimum average balance for new savings accounts. The reduction from Rs 50,000 to Rs 15,000 marks a significant shift in policy, with implications for banking fees across India. This change comes amidst broader trends in the banking sector, reflecting a growing sensitivity to customer needs.
Key Takeaways
- ICICI Bank has lowered MAB for new savings accounts.
- From Rs 50,000 to Rs 15,000 in urban areas.
- Similar reductions in semi-urban and rural areas.
- Penalties still apply for falling below these limits.
- Other banks are also revising their policies.
New Delhi, Aug 13 (NationPress) In response to significant public discontent, the private financial institution ICICI Bank announced on Wednesday a reduction in its minimum average balance (MAB) stipulations for new customers in metropolitan and urban locations from Rs 50,000 to Rs 15,000.
This adjustment followed customer protests and comes shortly after the bank had increased the MAB requirement from Rs 10,000 to Rs 50,000 for newly opened accounts in urban areas.
For new ICICI Bank clients in semi-urban regions, the minimum balance has also been cut to Rs 7,500, down from Rs 25,000.
In rural areas, the MAB has been reduced to Rs 2,500 from Rs 10,000, as previously suggested.
However, the bank has made it clear that customers who maintain less than the required balance will incur a penalty.
Earlier on the same day, HDFC Bank announced a new MAB of Rs 25,000, effective from August 1, 2025, for new account holders.
According to the updated HDFC Bank guidelines, account holders must maintain a balance of Rs 25,000. In urban and metropolitan branches, penalties are calculated as 6 percent of the shortfall or Rs 600, whichever is lower.
Notably, leading banks such as SBI, PNB, and Canara Bank have completely eliminated minimum balance requirements for savings accounts, along with penalty fees for non-compliance.
Meanwhile, Reserve Bank of India (RBI) Governor Sanjay Malhotra stated that the decision regarding minimum balance limits for savings accounts rests with individual banks, as it does not fall under any regulatory oversight. He noted that some banks have set a limit of Rs 10,000, while others have established it at Rs 2,000.
However, many banks have opted to remove this requirement altogether for their customers. "This decision does not fall under the regulatory domain," he emphasized.
Previously, customers opening savings accounts with ICICI Bank in urban and metropolitan areas after August 1 were required to maintain a monthly average balance of Rs 50,000 to avoid penalties, while existing customers had a minimum requirement of Rs 10,000.
Point of View
It's important to recognize that customer feedback is paramount in the banking sector. ICICI Bank's decision to reduce the minimum average balance requirements highlights the growing influence of consumer voices and reflects a necessary shift towards more customer-centric policies. It aligns with a broader trend where financial institutions are re-evaluating their terms to foster better relationships with their clients.
NationPress
08/10/2025
Frequently Asked Questions
What is the new minimum average balance for ICICI Bank?
ICICI Bank has reduced its minimum average balance requirement for new accounts in urban and metro areas to Rs 15,000.
How has ICICI Bank's balance requirement changed?
The requirement was previously Rs 50,000 and has now been revised to Rs 15,000 following customer backlash.
What penalties apply for not maintaining the balance?
Customers who fail to maintain the required balance will incur a penalty fee as specified by the bank.
Are other banks changing their balance requirements?
Yes, several other banks, including HDFC Bank, are also adjusting their minimum average balance requirements.
Why are banks altering their minimum balance policies?
Banks are responding to customer concerns and competition, leading to more flexible balance requirements.
