ICICI Bank hikes minimum account balance for urban areas to ₹50,000

The minimum balance for semi-urban regions has been increased to ₹25,000 and for rural branches has been increased to ₹10,000 from ₹5,000

The ICICI Bank has raised the average minimum balance for the savings accounts in metros and urban areas to ₹50,000, from the earlier ₹10,000, the bank notified in a circular on Saturday. The revised minimum average monthly balance will be applicable for all the new accounts opened after August 1.

Minimum balance for semi-urban, rural regions also hiked

The minimum balance for semi-urban regions has been increased to ₹25,000, from the previous ₹5,000 and the minimum balance for rural branches has been increased to ₹10,000 from ₹5,000.

Service charges revised

According to the circular, the bank has also revised its service charges on cash transactions. For cash deposits at a branch or through a machine, after three free transactions, a fee of ₹150 will be charged for each additional transaction. Similar charges will apply for cash withdrawals.

 

For cash deposits through a machine during non-banking hours or on holidays, a fee of ₹50 per transaction will be charged if the total transactions in a month exceed ₹10,000, said a report by CNBC Awaaz. 

 

In the metros, for transactions at non-ICICI Bank ATMs, the bank will charge ₹23 for each financial transaction and ₹8.50 for each non-financial transaction after the first three free transactions in a month, the report added. This limit will apply to the combined total of both financial and non-financial transactions.

Failure to maintain minimum balance will attract penalty

The new account holders, who will open accounts with the bank after August 1, will need to maintain a higher minimum account balance in the savings account. A failure to do so may attract a penalty.

 

At ICICI Bank, the average monthly balance is tracked on a monthly basis. This means that any days when the balance falls below the required ₹50,000-limit for urban regions, known as shortfall days, it can be offset by maintaining a higher balance on other days within the same month. As long as the overall average meets the prescribed limit, no penalty is applied.