ICICI Bank has reduced the need for minimum average balance (MAB) for new customers in urban areas from Rs 50,000 to Rs 15,000. This change has been made by the bank after heavy opposition from customers.
The second largest bank in the country has increased the MAB need for new customers from Rs 10,000 to Rs 50,000 in urban areas.
However, the need for this changed minimum average balance is still Rs 5,000 more than before. The minimum balance for new ICICI bank customers in semi-urban areas has also been reduced from Rs 25,000 to Rs 7,500. MAB will be Rs 5,000 for old customers in rural and semi-urban areas.
Also read: What did RBI Governor Sanjay Malhotra say on ICICI Bank holding ₹ 50000 minimum balance
Understand what happened in bullet point
- ICICI Bank changed the rule of minimum balance
- Minimum balance limit reduced to ₹ 15,000
- Metro, minimum balance in cities to ₹ 15,000
- Minimum balance limit in small cities ₹ 7500
- Minimum balance in rural areas is ₹ 2500
- Reduced minimum balance limit for new accounts
- Last week, the minimum balance was increased to ₹ 50000
- This rule of minimum balance implemented from 1 August
The ICICI Bank on Saturday announced that it has increased the minimum dues to Rs 50,000, opposite to other banks, who have rationalized their fine.
India’s largest bank, State Bank of India (SBI) abolished the minimum balance rule in 2020. Most other banks have a significant limit, usually between Rs 2,000 to Rs 10,000.
Why do banks charge minimum balance charge
Why does minimum balance charge charge?
Nowadays the bank works to provide many facilities such as ATMs, mobile banking and customers support. At the same time, the bank has to maintain its office. You have to pay your staff there. Along with this, it also has to be ensured that all digital services run correctly. Therefore, the bank fulfills its needs, charging a variety of charges.