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ICICI raises minimum balance for savings accounts from ₹ 10,000 to ₹50,000: What this means
The minimum average balance required has been increased from the earlier amount of ₹10,000 to ₹50,000 for account holders residing in metro and urban areas.
The ICICI Bank, in a major move, significantly increased the minimum balance requirement for savings accounts across all its branches.
The minimum average balance required has been increased from the earlier amount of ₹10,000 to ₹50,000 for account holders residing in metro and urban areas, ANI reported.
The minimum average balance requirement for account holders in semi-urban areas now stands at ₹25,000, up from ₹5,000. Meanwhile, the minimum balance for rural areas has been increased from ₹2,500 to ₹10,000.
What does the move mean for account holders?
Customers who are unable to maintain the minimum average balance required might be subjected to penalty charges, thus adding to the financial constraints of low-income account holders, ANI reported.
The steep hike in the minimum average balance will have an impact on account holders across the country, particularly those in semi-urban and rural areas.
Customers might also reconsider their banking choices owing to the move, and might shift to banks with a lower minimum balance requirement. They could also choose basic savings accounts which do not have such requirements in place.
Customers who fail to maintain the minimum balance amount will be charged 6 per cent of the shortfall or ₹500, whichever is lower, as the penalty. The charges will, however, be waived, if account holders meet the enrolled program criteria.
Family banking requirements
For those in family banking, the account holders are required to maintain 1.5 times the eligibility criteria specified for the program, failing which, non-maintenance charges will be levied on individual members who do not maintain thed MAB requirement. Pensioners are the only exemption to this rule.
In addition to this, the bank will charge ₹500 per instance for ECS/ NACH debit returns owing to financial reasons. There will be a cap of three charges per month for the same mandate.
