What happened to the ICICI Bank minimum balance rule starting from August 1? Summary of key changes and which customers may be affected
ICICI Bank’s shares took center Monday after private sector lenders had revised some of its minimum balance requirements for new clients. ICICI Bank recently raised the minimum balance requirement for new customers in cities and urban areas of the country, from Rs 10,000 to Rs 50,000. It also modified the minimum balance for semi-urban areas, from Rs 5,000 to Rs 25,000 and in rural areas, from Rs 2,500 to Rs 10,000. These changes will take effect from August 1.
ICICI Bank’s shares face sales pressure for most of the entire meeting before settling on BSE for Rs 1,436.7.
Do all ICICI banking customers have to meet the new minimum balance requirements?
According to ICICI Bank, the following accounts are exempt from the requirements:
- Payroll Account
- Retirement Account
- Student Savings Account (Students at a specific institution)
- PMJDY accounts and other special accounts
- Clients maintain Rs 2 million in savings and fixed deposits
The bank source speaking on anonymous terms said the Rs 50,000 requirement had no effect on the bank, as about half of its savings accounts were wage accounts.
Sources say it is not good for banks to maintain customers in cities such as Mumbai, which are unable to maintain Rs 50,000.
What did Reserve Bank of India Governor Sanjay Malhotra say about the bank’s minimum balance rule
Asked about the charges for commercial banks that violate their own minimum balance rules, RBI Governor Sanjay Malhotra said the central bank has left it to banks to decide the minimum balance they want customers to maintain.
“Some banks set it at Rs 10,000, while others are exempted at Rs 2,000. But this is not in the regulatory realm,” he told reporters.
How to calculate the minimum balance? What happens if there is a shortage?
Each calendar month requires the required average value, not necessarily daily.
A shortage of required rates will attract a fine of 6% or Rs 500, whichever is lower.
Non-ICICI Bank ATM Transactions
In addition, ICICI banking customers can also get three free transactions on ATMs outside of the banking network (non-ICICI banking ATM).
After exhausting the free use quota, each financial and non-financial transaction attracted Rs 23 and Rs 8.5 respectively.
Benefits of meeting minimum balance requirements
ICICI Bank offers a range of benefits to its clients commemorating its minimum balance rules. These benefits do not include:
- IMPS/NEFT/RTGS transactions on digital channels
- Issuing a check book
- Refuse to stand instructions
- Issuing duplicate passes
