Has ICICI Bank Increased Minimum Account Balance for New Customers?
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Synopsis
ICICI Bank has recently revised its minimum balance requirements for new customers, raising concerns and questions among account holders. The update, effective August 1, mandates higher balances for both urban and rural customers. Are these changes a sign of shifting banking policies in India?
Key Takeaways
- ICICI Bank has raised minimum average balance requirements for new customers.
- Urban customers must now maintain Rs 50,000 monthly.
- New semi-urban customers face a Rs 25,000 requirement.
- Rural customers are required to maintain Rs 10,000.
- Penalties for not meeting requirements include 6% of the shortfall or Rs 500.
New Delhi, Aug 9 (NationPress) ICICI Bank, the second largest bank in India, has announced a hike in the monthly minimum average balance requirements for all customer segments starting from August 1. Customers who have opened savings accounts in metro and urban areas after this date must maintain a monthly average balance of Rs 50,000 to avoid penalties, as per the latest update on the bank's website.
For existing customers, the minimum average balance requirement remains at Rs 10,000.
New customers in semi-urban areas are now obligated to maintain a monthly average balance of Rs 25,000, while those in rural regions must maintain Rs 10,000.
Existing customers in rural and semi-urban areas continue to have a minimum average balance requirement of Rs 5,000 a month.
If customers fail to meet these minimum balance requirements, they will incur a penalty of 6 percent of the shortfall or Rs 500, whichever is lower.
The bank now permits three complimentary cash deposits into savings accounts each month, after which a fee of Rs 150 per transaction will apply, with a cumulative limit of Rs 1 lakh per month. In April 2025, ICICI Bank reduced the interest rate on savings accounts by 0.25 percent, meaning accounts with deposits up to Rs 50 lakh will now earn an interest rate of 2.75 percent.
Customers are also limited to three complimentary cash withdrawals per month. A third-party cash deposit limit of Rs 25,000 per transaction is enforced across all savings accounts.
This increase in minimum average balance by a major private bank contrasts with other banks that have adjusted their penalties downwards. The largest lender in India, State Bank of India (SBI), eliminated the minimum balance requirement in 2020.
Most other banks maintain significantly lower thresholds, typically ranging from Rs 2,000 to Rs 10,000.
Point of View
It is crucial to view ICICI Bank's recent move with an unbiased lens. The increase in minimum balance requirements may appear to challenge customers, especially in a landscape where many banks are lowering their penalties. It reflects the bank's positioning in a competitive market, but it raises questions about customer accessibility and financial inclusivity.
NationPress
07/10/2025
Frequently Asked Questions
What is the new minimum balance requirement for metro customers?
Metro customers must maintain a minimum average balance of Rs 50,000 per month.
Are there different requirements for rural customers?
Yes, rural customers are required to maintain a minimum average balance of Rs 10,000.
What happens if I fail to meet the minimum balance?
If you do not maintain the minimum balance, a penalty of 6% of the shortfall or Rs 500, whichever is lower, will be levied.
How many complimentary cash deposits are allowed?
ICICI Bank allows three complimentary cash deposits per month.
What is the interest rate on savings accounts now?
The interest rate on savings accounts with deposits up to Rs 50 lakh has been reduced to 2.75%.
