Rs 50000 to Rs 15000; ICICI Bank withdraws controversial decision following social media outrage

NEW DELHI: Leading private lender ICICI Bank partially withdrew the erratic decision to increase the average monthly minimum balance for newly opened savings bank accounts from Rs 10,000 to Rs 50,000. The move comes after strong criticism by loyal customers against the bank’s new minimum balance policy.

The minimum average balance in urban areas has been reduced to Rs 15000 from Rs 50000. In semi-urban areas, the MAB was reduced to Rs 7500 from Rs 25000.

The bank earlier announced that the minimum balance of Rs 50,000 will be applicable for savings accounts opened at all its branches in metro and urban areas from August 1. The minimum balance in bank branches in semi-urban areas was increased from Rs 5,000 to Rs 25,000. In rural branches, the minimum balance has been increased from Rs 2,500 to Rs 10,000.

The decision drew flak as many raised concerns over the severe financial impact on customers, as it would impose a penalty on account holders who do not maintain the minimum balance. ICICI Bank clarified after raising the minimum balance that the penalty would be six per cent of the shortfall. The maximum penalty imposed is up to Rs 500.

This led to a flurry of criticism against the bank on social media. Many irked netizens termed it a daylight robbery of customers. Customers also demanded that the Reserve Bank urgently intervene in the matter.