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ICICI Bank cut its minimum average balance to Rs 15,000 for urban, Rs 7,500 for semi-urban, and Rs 2,500 for rural areas after backlash.
Meanwhile, Punjab National Bank and Canara Bank had announced the removal of penalty charges for not maintaining the minimum average balance in all saving accounts.
Minimum Balance Rule Comparison: Private lender ICICI Bank has taken a U-turn on the minimum average balance requirement after receiving widespread backlash for making financial and banking inclusion out of reach for the middle class. The bank has revised its earlier decision to maintain a minimum average balance of Rs 50,000 for new account holders in metro and urban locations.
As per the new announcement, the minimum balance requirement for urban/metro locations is Rs 15,000. Likewise, account holders in semi-urban and rural areas have to maintain a minimum balance of Rs 7,500 and Rs 2,500, respectively.
The limit is still in contrast to some lenders of the country that have reduced the MAB limit or removed it all for both urban and rural account holders.
SBI scrapped the MAB on all savings accounts for both rural and metros in 2020.
Likewise, Punjab National Bank (PNB) and Canara Bank had announced the removal of penalty charges for not maintaining the minimum average balance (MAB) in all savings accounts.
They brought significant relief to its savings account holders by eliminating the average monthly balance (AMB) requirement for all types of savings bank accounts.
Let’s see the comparison of MAB requirement for different lenders:
| Here’s the minimum balance requirement for Rural and Urban/Metro branches (savings account): | ||
| Bank | Rural Branches | Urban/Metro Branches |
| State Bank of India | Zero balance | Zero balance |
| Union Bank of India | With cheque book: Rs. 250 | With cheque book: Rs. 1,000 |
| Without: Rs. 100 | Without: Rs. 500 | |
| HDFC Bank | Rs. 2,500 | Rs. 10,000 |
| ICICI Bank | Rs. 2,500/7,500 | Rs. 15,000 |
| Axis Bank | Rs. 2,500 | Rs. 12,000 |
| Bank of Baroda | Rs. 500 | Rs. 2,000 |
| IDFC First Bank | Rs. 10,000 or Rs. 25,000 | Rs. 10,000 or Rs. 25,000 |
| Punjab National Bank | Rs. Zero | Zero |
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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