Daijiworld Media Network – Mumbai

Mumbai, Aug 9: ICICI Bank, India’s second largest lender, has sharply increased the monthly minimum average balance requirement for new savings account holders across customer categories, effective August 1. The move, according to a banker who spoke on condition of anonymity, aims to expand the bank’s premium customer base in line with some large foreign banks.

For new metro and urban customers, the minimum monthly average balance has been raised to Rs 50,000 from the earlier Rs 10,000. The previous requirement will, however, continue for existing customers.

In semi-urban areas, new customers must now maintain Rs 25,000, while rural customers will be required to keep Rs 10,000. For older accounts, the minimum remains at Rs 5,000 a month in both semi-urban and rural categories.

The bank has also specified penalties for non-compliance, set at 6% of the shortfall or Rs 500, whichever is lower.

The revision marks a significant shift by a major private sector lender at a time when other banks are reducing or waiving penalties. Notably, State Bank of India, the country’s largest lender, has already scrapped minimum balance charges for its customers.