ICICI Bank, India’s second-largest lender, has introduced changes to its monthly minimum average balance requirements for customers. As of August 1, the bank has increased the minimum average balance for new metro and urban customers to Rs 50,000. This is a significant increase from the previous requirement of Rs 10,000, which will still apply to existing customers who opened their accounts before August 1.
The new requirements are now listed on the bank’s website, and according to a banker who wished to remain anonymous, the move is aimed at attracting a more premium customer base. The banker suggested that ICICI Bank is looking to emulate the customer base of large foreign banks, which often have more stringent requirements for their clients.
The change in minimum average balance requirements is likely to impact new customers who open savings accounts with ICICI Bank in metro and urban areas. These customers will now need to maintain a monthly average balance of Rs 50,000 to avoid any penalties or fees. The bank’s decision to increase the minimum average balance requirement may be seen as a way to encourage customers to maintain higher balances, which could lead to increased deposits and revenue for the bank.
It’s worth noting that existing customers who opened their accounts before August 1 will not be affected by the change and will continue to be subject to the previous minimum average balance requirement of Rs 10,000. The bank’s decision to grandfather in existing customers may help to minimize any potential disruption or backlash from customers who are accustomed to the previous requirements.
Overall, ICICI Bank’s decision to increase the minimum average balance requirement for new customers in metro and urban areas reflects the bank’s efforts to attract a more premium customer base and increase its revenue. As the banking landscape in India continues to evolve, it will be interesting to see how ICICI Bank’s strategy plays out and whether other banks follow suit.