ICICI Bank, India’s second-largest private sector bank, has made a significant decision regarding the minimum average balance (MAB) requirement for new savings accounts. Following widespread criticism over a recent substantial increase in MAB charges, the bank has responded to intense customer opposition by revising its policy. The bank issued a new announcement, significantly reducing the previously hiked charges to address customer concerns.
Under the revised regulations, new customers in urban areas must now maintain a minimum average balance of ₹15,000, down from the earlier ₹50,000. Just days ago, the bank had raised the MAB limit from ₹10,000 to ₹50,000, triggering strong objections from account holders. In response, ICICI Bank’s management scaled back the requirement, though the new ₹15,000 limit remains ₹5,000 higher than the previous ₹10,000 threshold.
Similarly, for new customers in semi-urban areas, the bank has reduced the minimum average balance requirement from ₹25,000 to ₹7,500, offering relief to account holders in these regions. However, no changes have been made to the MAB requirements for existing customers in rural and semi-urban areas, where the current ₹5,000 minimum balance rule continues to apply.
In contrast, the State Bank of India (SBI), the country’s largest public sector bank, eliminated the minimum balance requirement for savings accounts entirely in 2020. Other banks typically set MAB limits between ₹2,000 and ₹10,000. Against this backdrop, ICICI Bank’s initial decision to significantly increase the minimum balance sparked heated debate. The bank’s subsequent rollback in response to criticism is a noteworthy development.
FAQs
1. What is the new minimum average balance for ICICI Bank savings accounts in urban areas?
The revised minimum average balance for new savings accounts in urban areas is ₹15,000.
2. How has ICICI Bank changed its policy for semi-urban customers?
For new customers in semi-urban areas, the minimum average balance has been reduced from ₹25,000 to ₹7,500.
3. Are existing ICICI Bank customers affected by the new MAB rules?
No, existing customers in rural and semi-urban areas continue to maintain a minimum average balance of ₹5,000, with no changes.
4. Why did ICICI Bank revise its minimum balance policy?
The bank faced significant customer backlash after increasing the MAB to ₹50,000 in urban areas, prompting a revision to address concerns.
5. How does ICICI Bank’s MAB policy compare to other banks?
While ICICI Bank’s revised MAB is ₹15,000 for urban areas, other banks typically set limits between ₹2,000 and ₹10,000. SBI eliminated MAB requirements in 2020.
Disclaimer
The information in this article is based on the latest announcement from ICICI Bank regarding its minimum average balance policy for savings accounts. Readers are advised to verify details directly with ICICI Bank or through its official website (www.icicibank.com) for the most accurate and up-to-date information. This article is for informational purposes only and does not constitute financial advice.
Official ICICI Bank Website: www.icicibank.com for detailed information on savings account policies.