'Decision does not fall under...': RBI Governor issues big statement after ICICI bank raises minimum account balance to Rs 50000

India.com

2 days ago

RBI governor Sanjay Malhotra
New Delhi: In a significant statement after ICICI bank raised minimum account balance to Rs 50,000, Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that the monthly minimum average balance requirement will be decided by banks as the decision does not fall under any regulatory jurisdiction. Here are all the details you need to know about what Reserve Bank of India (RBI) Governor Sanjay Malhotra has said on the ICICI bank's action. What has ICICI bank said on monthly minimum average balance requirement?
Asked on the sidelines of a financial inclusion programme in Gujarat about the RBI's response to ICICI Bank's new rules, Malhotra said the central bank has left it to the banks to decide the minimum average balance, as per a report carried by IANS news agency.
He further said that some banks have fixed this limit at Rs 10,000, while some banks have kept this limit at Rs 2,000 for customers. However, there are many banks that have completely removed it for their customers. 'This decision does not fall under the regulatory domain,' he clarified. What are the new rules at monthly minimum average balance requirement?
According to ICICI Bank, customers at metro and urban locations who opened their savings accounts on or after August 1 have to maintain Rs 50,000 monthly average balance to avoid penalties. The minimum average balance for older customers remains Rs 10,000. New customers in semi-urban locations will be required to maintain a minimum average balance of Rs 25,000, and rural customers will have to maintain Rs 10,000.
Readers should note that the minimum average balance remains at Rs 5,000 a month for old customers in rural and semi-urban areas. Customers who do not maintain the minimum average balance will be levied a penalty at 6 per cent of the shortfall or Rs 500, whichever is lower.
(With inputs from agencies)