ICICI Bank's New Minimum Balance Policy

ICICI Bank, India's second-largest lender, has announced a significant increase in the monthly minimum average balance (MAB) requirement for new savings account holders, effective from August 1. This move is set to impact customers across metro, urban, semi-urban, and rural branches differently.

Detailed Breakdown of the New Requirements

For new accounts opened after August 1, customers in metro and urban branches will need to maintain a monthly average balance of Rs 50,000, a substantial increase from the previous Rs 10,000. Semi-urban branches see a rise to Rs 25,000 (from Rs 5,000), and rural branches now require Rs 10,000 (up from Rs 2,500).

Penalties and Waivers

Failure to maintain the required MAB will result in a penalty of 6% of the shortfall or Rs 500, whichever is lower. However, these charges can be waived for customers who meet the bank’s enrolled program criteria.

Revised Cash Transaction Policy

The bank has also updated its cash transaction policy, allowing three free cash transactions per month across branches and Cash Recycler Machines. Beyond this limit, a fee of Rs 150 per transaction will apply.

Additional Fees and Charges

Other changes include fees for ECS/NACH debit returns, outward and inward cheque returns, and declined transactions due to insufficient balance, with charges ranging from Rs 25 to Rs 500 depending on the circumstance.