ICICI Bank shares took a mild hit in Monday’s trade after the private sector lender revised certain minimum balance requirements for its new customers. In afternoon deals, the ICICI Bank stock was down 0.4 per cent at Rs 1,430.8 apiece on BSE, having regained some ground after falling as much as 1.2 per cent to Rs 1,419.9 apiece in intraday trade so far.
Over the weekend, ICICI Bank raised the minimum balance requirement for new customers in urban and semi-urban regions in the country, from Rs 10,000 and Rs 5,000 to Rs 50,000 each, respectively. It also raised the minimum balance for accounts in rural areas to from Rs 2,500 to Rs 10,000.
The changes took effect from August 1.
What RBI Governor Sanjay Malhotra said
Asked about the issue of commercial banks charging for non-compliance with their own minimum balance rules, RBI Governor Sanjay Malhotra said that the central bank has left it for the banks to decide what minimum balance they want their customers to maintain.
“Some banks have set it at Rs 10,000, others at Rs 2,000 with waivers. But this does not fall under the regulatory domain,” he told reporters.
Do all ICICI Bank customers have to bear the new minimum balance requirements?
The following accounts are exempt from the requirement, according to ICICI Bank:
- Salary accounts
- Pensioner accounts
- Student savings accounts (students of select institutions)
- PMJDY accounts and other special accounts
- Customers maintaining Rs 2 lakh across savings and fixed deposits
The Rs 50,000 requirement doesn’t make a difference to the bank, as about half of its savings accounts are salary accounts, according to bank sources who spoke on the condition of anonymity.
Customers not able to maintain a balance of Rs 50,000 in cities like Mumbai offer no benefit to the bank, said the sources.
Benefits of meeting minimum balance requirement
ICICI Bank offers a range of benefits to its customers honouring its minimum balance rules. These benefits include no charges on:
- IMPS/NEFT/RTGS transactions on digital channels
- The issuance of cheque books
- The rejection of standing instructions
- The issuance of duplicate passbooks
