MUMBAI: The second largest private sector lender ICICI Bank has effected a steep five fold increase in the minimum average monthly balance requirement. The changed minimum balance requirement is applicable to only new savings accounts (non-salary) opened from August across all regions with the demand in metros going up to Rs 50,000 from Rs 10,000 and in non-metros to Rs 25,000 from Rs 5,000 now.
Non-maintenance of the required balance will invite a penalty of 6% of the required balance deficit or Rs 500, whichever is less. These charges are imposed even as most of the public sector banks have waived this clause in recent months. In fact, SBI has done so since 2020.
For new savings accounts opened from this month in rural branches the balance requirement is Rs 10,000 compared to Rs 2,500 earlier.
However, the interest that these accounts will earn remains unchanged at a low 2.5 percent per annum, one of the lowest in the industry after SBI’s 2.25 per cent rate, according to the updated service terms posted on the bank’s website.
The new account holders in ICICI Bank will however get certain fee waivers such as free IMPS transactions and also free cheque books. The bank has also revised its service charges for cash transactions. For cash deposits at branches and cash recycler machines, a customer will be allowed three free transactions per month. Thereafter, each transaction will be charged at Rs 150. A cumulative monthly value limit of Rs 1 lakh is available without charges beyond which Rs 3.5 per Ra 1,000 or Ra 150—whichever is higher—will apply. Third-party cash deposits are capped at Rs 25,000 per transaction.
Cash withdrawals at branches will follow the same structure—three free monthly transactions, Rs 150 per additional transaction, and a free cumulative monthly limit of Rs 1 lakh. Charges beyond this limit will also be Rs 3.5 per Rs 1,000 or Rs 150, whichever is higher. Third-party withdrawals are similarly capped at Rs 25,000 per transaction, an ICICI bank release said.
Deposits made via cash machines or cash recycler machines during non-working hours (4.30 pm to 9 am) and on holidays will attract Rs 50 per transaction if the total deposits exceed Rs 10,000 in a month.
For ATM transactions at non-ICICI Bank machines in the six metro locations of Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad, the bank will levy Rs 23 per financial transaction and Rs 8.5 per non-financial transaction after the first three monthly transactions.