From Aug 1, what happened in ICICI Bank minimum balance rules? A summary of key changes and which customers may be impacted

ICICI Bank shares took centre stage on Monday after the news that the private sector lender had revised certain minimum balance requirements for its new customers. ICICI Bank recently raised the minimum balance requirement for new customers in urban and urban regions in the country, from Rs 10,000 to Rs 50,000. It also revised the minimum balance for accounts in semi urban areas from Rs 5,000 to Rs 25,000, and in rural regions from Rs 2,500 to 10,000. The changes took effect from August 1.  

The ICICI Bank stock faced selling pressure for much of the session before settling flat at Rs 1,436.7 apiece on BSE. 

Do all ICICI Bank customers have to bear the new minimum balance requirements?

The following accounts are exempt from the requirement, according to ICICI Bank:

• Salary accounts 
• Pensioner accounts 
• Student savings accounts (students of select institutions)
• PMJDY accounts and other special accounts 
• Customers maintaining Rs 2 lakh across savings and fixed deposits 

The Rs 50,000 requirement doesn’t make a difference to the bank, as about half of its savings accounts are salary accounts, according to bank sources who spoke on the condition of anonymity. 

Customers not able to maintain a balance of Rs 50,000 in cities like Mumbai offer no benefit to the bank, said the sources. 

What RBI Governor Sanjay Malhotra said about banks’ minimum balance rules

Asked about the issue of commercial banks charging for non-compliance with their own minimum balance rules, RBI Governor Sanjay Malhotra said that the central bank has left it for the banks to decide what minimum balance they want their customers to maintain.

“Some banks have set it at Rs 10,000, others at Rs 2,000 with waivers. But this does not fall under the regulatory domain,” he told reporters.

How is the minimum balance calculated? What happens in case of shortfall?

The required average needs to be maintained for every calendar month, not necessarily on a daily basis. 

A shortfall of the required rate attracts a penalty of 6 per cent of the shortfall or Rs 500, whichever is lower. 

Non-ICICI Bank ATM transactions

Besides, ICICI Bank customers also get three free transactions at ATMs outside the bank’s network (non-ICICI Bank ATMs).   

After exhausting the free-to-use quota, each financial and non-financial transaction attracts a charge of Rs 23 and Rs 8.5, respectively.

Benefits of meeting minimum balance requirement 

ICICI Bank offers a range of benefits to its customers honouring its minimum balance rules. These benefits include no charges on: 

• IMPS/NEFT/RTGS transactions on digital channels
• The issuance of cheque books
• The rejection of standing instructions 
• The issuance of duplicate passbooks