India’s second-largest private bank, ICICI Bank, has significantly increased its minimum balance requirement, sparking a heated debate. Many believe the bank is no longer catering to lower-income customers. RBI Governor Sanjay Malhotra has also responded to the matter.
New Delhi: ICICI Bank has increased the minimum balance requirement fivefold to ₹50,000. It is being speculated that the bank is focusing on wealthy customers and distancing itself from poorer ones. Responding to this, the RBI Governor said:
“It is up to each bank to decide how much minimum balance they require. This does not come under RBI’s regulatory jurisdiction.”
He explained that different banks have set this limit anywhere between ₹2,000 and ₹10,000, while some have removed it entirely.
What do the new rules say?
-
In cities: Minimum balance ₹50,000 (previously ₹10,000)
-
In smaller towns: ₹25,000 (previously ₹5,000)
-
In villages: ₹10,000 (previously ₹2,500)
However, basic savings accounts and salary accounts will not have any minimum balance requirement. The bank claims this will reduce operating costs, and several old charges will be waived.
ICICI vs HDFC
India’s largest private bank, HDFC, has a minimum balance of ₹10,000 in cities, ₹5,000 in smaller towns, and ₹2,500 in villages. Meanwhile, SBI abolished the minimum balance requirement entirely in 2020.