ICICI Bank focusses on the affluent: Raises min average balance to Rs 50,000

Kolkata: The average minimum balance in a savings account is a powerful tool to control the profile of customers that a bank wants. While RBI does not have any stipulation with regards to this balance, banks usually keep it low so that the common man or woman does not find this requirement difficult to comply with. ICICI Bank, the second biggest private sector bank in the country, has steeply raised the average minimum balance required for savings account holders.

The minimum balance that is followed in different areas is different. They are different in urban, semi-urban and rural branches. While the minimum balance in urban areas was Rs 10,000, it has been raised by 500% to Rs 50,000. In the semi-urban branches, the floor has been increased from Rs 5,000 to Rs 25,000 -- again a jump by 500%. And in rural areas, the surge has been 400% -- from Rs 2,500 to Rs 10,000. According to the new rule, the balance requirements has kicked in from August 1, 2025. According to reports, the earlier balance requirements will continue to apply to existing accounts.

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The minimum average balance set by ICIC Bank is incidentally the highest among all Indian banks. The nearest comparison is with the biggest private sector bank HDFC Bank, which has the minimum balances at Rs 10,000 in urban branches, Rs 5,000 for semi-urban branches and Rs 2,500 in rural branches -- the earlier level of ICICI Bank. The country's largest lender -- public sector goliath State Bank of India (SBI) -- has done away with minimum balance completely five years ago. the banks that have minimum average balance rules typically realise penalty in case the averages are not maintained by a customer.

Bank officials say that the minimum balance requirements are set with an eye to covering operational expenses that are required on a day to day basis.

Another PSU bank Union Bank of India charges a minimum balance of Rs 1,000 in urban branches with cheque book facility and Rs 500 without this facility. In semi-urban areas, the MAB is Rs 500 and Rs 250 with and without cheque book respectively. In the rural areas the amounts go down to Rs 250 and Rs 100 with and without cheque books.

The third largest private sector bank in India, Axis bank, has the following rule: Rural branches: Rs 2,500; semi-urban branches: Rs 5,000 and urban branches Rs 12,000.

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ICICI Bank has a network of 6,523 business centres, says its website. It also has as many as 17,190 ATMs and cash recycling machines and 570 insta banking kiosks all over the country. These were at the end of FY24. According to reports, it has subsidiaries in the UK and Canada. ICICI Bank has branches in the US, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China and South Africa. It also maintains representative offices in the USE, Bangladesh, Malaysia and Indonesia. The UK subsidiary of ICICI Bank has established branches in Belgium and Germany.