Overview

• New savings accounts opened from August 1 must meet monthly average balances of ₹50,000 in metro and urban branches, ₹25,000 in semi-urban and ₹10,000 in rural locations, with penalties set at 6% of any shortfall or ₹500, whichever is lower.
• Existing customers retain their previous, lower balance thresholds and the bank exempts salary accounts, basic zero-balance accounts, pensioners and participants in certain ICICI programmes from the higher requirements.
• Bank Bachao Desh Bachao Manch has formally written to the finance ministry decrying the move as “unjust and regressive” and calling for government intervention to protect financial inclusion.
• Reserve Bank Governor Sanjay Malhotra reiterated that minimum-balance rules are commercial decisions for lenders and do not fall under immediate RBI regulation.
• ICICI Bank shares slipped about 1% as social media criticism mounted and some depositors signalled intentions to close or shift their accounts.