Recently, the ICICI Bank received criticism online, as it increased the minimum balance amount to Rs 50000 for its new savings account. The bank revised the minimum balance requirement after backlash from raising it, effective August 1. Now, the bank has lowered the amount to Rs 15,000.
The account holders opposed the decision to raise the minimum requirement, and many of them protested on social media about the sudden rise in the MAB (Minimum Account Balance). As a result, the ICICI bank stepped back and reduced the amount.
Also Read: Should You Consider ICICI Prudential Small Cap Fund in 2025?
The new statement from ICICI Bank is that the customers from Metro or Urban locations who have a savings account in the bank will have to maintain an MAB of Rs 15,000 in their accounts to avoid penalties. Moreover, the MAB has been set to Rs 7,500 for the semi-urban locations and Rs 2,500 for rural locations.
The bank will deduct Rs 500 or 6% of the shortfall amount (whichever is lower) if MAB is not maintained. The bank also stated that these MAB and later penalties do not apply to those who are opening a pension or student savings account.
Must Read: What is the Best Date for SIP? Tip for Smart Investors
The RBI's Statement: When the ICICI Bank raised the MAB amount, questions were raised about whether the central bank of the country, RBI (Reserve Bank of India) has any guidelines to monitor the minimum balance requirement.
Sanjay Malhotra, RBI Governor, responded to these questions by stating that banks are free to determine the MAB for savings accounts, and this issue does not fall under the central bank's regulations.
He recorded the statement, "The RBI has left it to individual banks to decide on the minimum account balance for the savings account. Some banks have kept it at Rs 10000 and some at Rs 2000, while some have excused customers from the MAB. It is not in the regulatory domain of RBI (Central Bank)."
Curated Portfolio
Portfolio Checkup
Freedom SIP
Funds Recommendation
