India’s second-largest lender, ICICI Bank, has increased the monthly minimum average balance requirement for savings accounts opened on or after August 1, according to an NDTV Profit report.
The move is aimed at building a more premium customer base, a banker told the publication on condition of anonymity.
For metro and urban customers, the new threshold is Rs 50,000, up from Rs 10,000 earlier. The previous limit will continue to apply for older customers.
Semi-urban account holders opening accounts after August 1 must maintain Rs 25,000, while rural customers must keep Rs 10,000.
For existing customers, the monthly minimum remains Rs 5,000 in both segments.
The updated rates are listed on the bank’s website.
“ICICI Bank is looking to build a customer base like some large foreign banks,” the banker said.
Customers failing to meet the minimum balance will face a penalty of 6 per cent of the shortfall or Rs 500, whichever is lower.
The change comes as some banks move in the opposite direction, reducing penalties. State Bank of India, the country’s largest lender, has already removed all minimum account charges.