ICICI Bank makes U-turn, reduces Minimum balance limit of Rs 50,000, the new limit is Rs….

New Delhi: In a major relief to its customers, the ICICI Bank has reduced the recently increased minimum balance requirement for new customers. The bank has informed that the rules for the minimum account balance (MAB) in savings accounts have been revised again. According to the bank, the limit in metro and urban areas has been reduced from Rs 50,000 to just Rs 15,000.

The ICICI has revised the minimum monthly average balance (MAB) requirement for savings accounts in metro and urban areas. For semi-urban areas it has now been reduced from Rs 25,000 to Rs 7,500, and for rural areas from Rs 10,000 to Rs 2,500. However, it is important to note that the bank has made it clear that if customers maintain a balance below the specified limit in their account, they will have to pay a penalty.

Here are some of the key details:

  • ICICI bank increased the minimum balance or minimum average amount requirement for savings accounts.
  • The limit was raised fivefold compared to before.
  • According to the new rule, account holders are now required to maintain at least ₹50,000 in their accounts instead of the earlier Rs 10,000.
  • The bank clarified that this change regarding the minimum balance applies only to accounts opened on or after the date the rule came into effect — that is, from August 1.
  • The bank has now decided to reduce the minimum balance limit.
  • The increased limit had come into effect on August 1, and the reduced limit will also be effective from the same date.
  • ICICI Bank has also clarified that the new limit will not apply to salary accounts, senior citizen accounts, or pensioners’ accounts, nor will it apply to bank accounts opened before July 31.

Penalty for low balance

It is important to note that while ICICI Bank’s decision to reduce the previously increased MAB limit is a relief, the old penalty rule will still apply under the new limit.

What does this mean?

This means that if a customer fails to maintain the required minimum balance in the account, a charge of either 6% of the shortfall or ₹500 (whichever is lower) will be imposed.

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