NEW DELHI – ICICI Bank has reduced the minimum average balance (MAB) for new savings account holders in metro and urban areas to Rs15,000, down from the Rs50,000 requirement introduced earlier this month.
The move follows widespread criticism after India’s second-largest private lender increased the MAB from Rs10,000 to Rs50,000 for new customers in urban locations from August 1.
In semi-urban branches, the MAB for new customers has been lowered to Rs7,500 from Rs25,000, while rural accounts now require Rs2,500 instead of Rs10,000. The bank said penalties will still apply if account balances fall below the set thresholds.
Earlier, HDFC Bank raised the MAB for new accounts in urban areas to Rs25,000, with a penalty of 6% of the shortfall or Rs600, whichever is lower.
Public sector lenders including SBI, PNB, and Canara Bank have removed minimum balance requirements and related penalties entirely.
RBI Governor Sanjay Malhotra reiterated that MAB policies remain under the discretion of individual banks, with current limits across the sector ranging from Rs2,000 to Rs10,000, and in some cases, no requirement at all.
