'Rs 50,000 minimum balance, penalty for account holders'; ICICI Bank faces ire of loyal customers

KOCHI: Leading private sector bank ICICI Bank decided to increase the average monthly minimum balance for newly opened savings bank accounts from Rs 10,000 to Rs 50,000. The amount will apply to savings accounts opened at all branches of the bank in metro and urban areas from August 1. The minimum balance was increased from Rs 5,000 to Rs 25,000 in bank branches in semi-urban areas. The minimum balance in rural branches was increased from Rs 2,500 to Rs 10,000.

The decision will have a huge financial impact on customers as it will impose a penalty on account holders who do not maintain the minimum balance. ICICI Bank clarified that the penalty will be six per cent of the shortfall. However, the maximum penalty imposed is up to Rs 500.

The decision left many fuming on social media as they heavily criticised the bank for duping their very own loyal customers. Critics termed it ‘daylight robbery’ and demanded that the Reserve Bank urgently intervene in the matter.