Latest news with #JayKotak
Mint
12-08-2025
- Business
- Mint
‘Worst decision of ICICI Bank': Influencers, netizens react to minimum balance rule
India's second-largest private sector lender, ICICI Bank, increased its minimum balance requirement for all new savings bank accounts effective 1 August 2025. Since its announcement, the institutional lender's decision to increase the minimum balance threshold has sparked mixed emotions among the banking customers. People have taken their concerns to the social media platform X with an overall opinion of how upset they are about the move. A social media user and influencer, Anuj Prajapati, said that this is the 'worst decision' that ICICI Bank has ever taken, highlighting how the urban youth now search to invest their funds rather than having them sitting in a bank account. 'The Worst Decision of ICICI Bank,' said Prajapati. 'Why the hell people put their money in accounts. Urban youth wants to invest those money not to sit dead in Bank Accounts (sic),' he said in the post. Founder of Hercules Advisors and a Sebi-registered investment advisor, Aditya Shah, re-shared Jay Kotak's post on the platform X, and emphasised how '90% of Indians earn less than ₹ 25,000' and questioned how these people will maintain such a high minimum balance. '90% Indians make less than ₹ 25,000. How will they maintain a minimum balance? Basic Savings Account with some level of basic banking service should be absolutely free!' said Shah, focusing on how the lenders can charge MAB for the extra services. 'A ₹ 50,000 minimum balance implies a sum equal to 94% of Indians monthly income is to be left with the bank at all times, else a fee!' said Jay Kotak in his post. Some netizens even tried to deactivate their savings deposit account with ICICI Bank after the minimum balance hike. 'Better to close the account of ICICI bank and move to other banks with attractive benefits,' said a social media user named Deepak Parvat in his post on X. 'Banks talk about their costs. Customers care about results. They want their money fast, they want clarity, and they want a fair return. Your operating expenses aren't their problem. Banks need to match what's already available in the market. If they don't, money will keep flowing elsewhere,' said Rajan Bajaj, the Founder and Executive Director of Slice Bank. With some contrarian views, Sebi-registered investment advisor Ankit Kanodia said that the reality of this minimum balance hike is that 'No one's being unbanked,' as the State Bank of India and other PSU banks have zero-balance account options for customers. 'This is called premiumization,' said Kanodia in his post. ICICI Bank announced its decision to increase the minimum balance requirement (MBR) to ₹ 50,000 per month for new customers opening savings accounts with the institution, effective 1 August 2025. The details of the announcement show that every customer who opens a bank account in ICICI Bank's Metro and Urban branch locations after 1 August 2025 will have to maintain a minimum account balance (MAB) of ₹ 50,000 per month to avoid being penalised for going below the threshold. Mint reported earlier that the minimum balance requirement has been increased from ₹ 10,000 every month. ICICI Bank customers who open their savings bank account at a Semi-Urban branch location after the set date will be subject to maintaining a minimum balance of ₹ 25,000 and ₹ 10,000 at a Rural branch of the private institutional lender, compared to their earlier ₹ 5,000 MAB levels. According to the data collected from the official website, if customers fail to maintain the minimum balance levels specified in their savings bank accounts, the bank will charge them 6% of the shortfall amount as a penalty or up to ₹ 500, whichever is lower. "In case of Family Banking, the customer must collectively maintain 1.5 times program eligibility criteria. If family banking threshold criteria are not met, the non-maintenance charges will be applicable to family members who do not maintain individual MAB," ICICI Bank said in its service charges announcement update. Disclaimer: This article only intends to educate and spread awareness about bank accounts and the minimum balance requirements. Mint does not promote or encourage making investments without seeking professional advice from certified experts.
Mint
11-08-2025
- Business
- Mint
‘90% of India makes less than ₹25,000…': Jay Kotak slams ₹50,000 minimum bank balance rule
ICICI Bank is facing heat after hiking its savings account minimum balance by 5 times, and this time veteran banker Uday Kotak's son Jay Kotak has spoken up against the move. In a post on X without explicitly mentioning the ICICI Bank minimum balance hike, Jay Kotak said 90 per cent of Indians make less than ₹ 25,000 a month. 'Every Indian must access our financial sector. 90% of India makes less than ₹ 25,000 a month. A ₹ 50,000 minimum balance implies a sum equal to ~94% of Indians monthly income is to be left with the bank at all times, else a fee!,' he said. Jay Kotak, who leads Kotak Mahindra Bank's digital banking arm Kotak 811, said digital first is the way to go. 'Implication: physical cost to serve may be high. Digital first is the way. If banks don't do it, fintechs will. Banking should be for all Indians.' The ICICI Bank minimum balance for savings account has been hiked from ₹ 10,000 to ₹ 50,000 for urban accounts. MAB (Minimum Account Balance) for semi-urban locations and rural locations have also been increased five times ₹ ₹ 25,000 and ₹ 10,000, respectively, according to information available on the ICICI Bank website. Non-maintenance of ICICI Bank minimum balance will attract penalty, the bank said. The lender will charge 6 per cent of the shortfall in required MAB, or ₹ 500, whichever is lower, if you stay in an urban area and cannot maintain ₹ 50,000 account balance. The changes are applicable to ICICI Bank savings accounts opened on or after August 1. The minimum balance remains ₹ 5,000 for old customers in rural and semi-urban areas. For old urban customers, the minimum account balance should be maintained at ₹ 10,000. The ICICI Bank minimum balance hike was criticised by many, with social media users calling the move discriminatory and elitist. A user wrote, 'In a country where 23 crore people live below the poverty line, ICICI thinks ₹ 50,000 is a 'minimum'. Masterstroke!' In a letter to the finance secretary, 'Bank Bachao Desh Bachao Manch' termed the private lender's decision as "unjust and regressive". 'This retrograde decision undermines the principle of inclusive banking,' the forum's joint conveners, Biswaranjan Ray and Soumya Datta, claimed.
Economic Times
11-08-2025
- Business
- Economic Times
Middle class under fire? Jay Kotak slams Rs 50,000 bank minimum balance rule, warns of impact on 90% of Indians
Synopsis Jay Kotak has criticised ICICI Bank's sharp hike in the minimum average balance for new savings accounts, warning it forces most middle-class Indians to lock away nearly all their monthly income to avoid penalties. From 1 August 2025, new urban and metro account holders must keep Rs 50,000, up from Rs 10,000. The Reserve Bank of India says such thresholds are a bank's decision. Agencies Middle class under fire? Jay Kotak slams Rs 50,000 bank minimum balance rule, warns of impact on 90% of Indians Jay Kotak, son of veteran banker Uday Kotak, has voiced strong concern over steep hikes in minimum average balance requirements for savings accounts, recently announced by ICICI Bank. Without naming the bank, Kotak said such rules ignore India's income reality.'Every Indian must access our financial sector. Ninety percent of India makes less than Rs 25,000 a month. A Rs 50,000 minimum balance implies a sum equal to around 94% of Indians' monthly income is to be left with the bank at all times, else a fee!' he wrote on described the middle class as those earning below Rs 25,000 per month, noting that anyone above that earns more than 90% of the country. He argued that requiring almost an entire month's income to sit idle just to avoid charges was impractical. He also promoted digital-first banking, saying, 'For banks, the physical cost to serve is high, which is why digital-first banking is the future.' — jay_kotakone (@jay_kotakone) ICICI Bank has announced that new customers opening savings accounts from 1 August 2025 will face higher monthly average balance requirements. Metro and urban branches: Rs 50,000 (previously Rs 10,000) Semi-urban branches: Rs 25,000 (previously Rs 5,000) Rural branches: Rs 10,000 (previously Rs 5,000) The revised rules do not apply to existing customers unless the bank notifies them. Salary accounts and Basic Savings Bank Deposit Accounts will continue to have zero-balance terms. For those who do not maintain the new minimum, ICICI Bank will charge 6% of the shortfall or Rs 500, whichever is lower. The bank has also revised cash transaction limits. Customers get three free deposits a month; each extra deposit costs Rs 150. Monthly deposits over Rs 1 lakh will attract Rs 3.5 per Rs 1,000 or Rs 150, whichever is higher. Third-party deposits and withdrawals are capped at Rs 25,000 per deposits through machines outside business hours, if above Rs 10,000 in a month, will incur an extra Rs 50 fee on top of standard use at non-ICICI machines in Mumbai, Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad will cost Rs 23 per financial transaction and Rs 8.5 per non-financial transaction beyond the first three free Bank of India Governor Sanjay Malhotra has clarified that the central bank does not regulate minimum balance requirements. 'The Reserve Bank of India has left it to the banks to decide the quantum of minimum average balance,' he said at a financial inclusion event in Gujarat. 'Some banks have capped it at Rs 10,000, others at Rs 2,000, and some have done away with it altogether. This issue does not fall under the regulatory domain.' ICICI Bank's move comes as several public sector banks, including SBI, Punjab National Bank, Canara Bank, and Indian Bank, have dropped penalties for non-maintenance of minimum balance to widen access. SBI started the trend by removing such charges sector banks have largely retained penalty structures, typically charging 6% of the shortfall or Rs 500 per quarter. Many have also reduced interest rates on savings deposits in recent months to protect divergence signals a growing gap between private and public sector strategies on financial inclusion and customer retention.
India.com
11-08-2025
- Business
- India.com
90% Indians Earn Less Than Rs 25K/Month: Jay Kotak On ICICI Banks Decision To Hike Minimum Average Monthly Balance To Rs 50,000
New Delhi: Jay Kotak, son of Uday Kotak, has slammed ICICI Bank for raising the minimum average monthly balance for metro and urban savings account holders to Rs 50,000. According to Kotak, several middle-class employees in India still earn Rs 25,000 per month and a minimum balance of Rs 50,000 means that almost 94 percent of their monthly income would always be left with the bank. 90 Percent Of Indians Earn Less Than Rs 25,000 Every Month: Jay Kotak Jay Kotak, the co-head of Kotak811, said that 90 percent of Indians earn less than Rs 25,000 every month. If these people are required to maintain a minimum balance of Rs 50,000, then it will mean that around 94 percent of their monthly income will be left with the bank at all times. "Every Indian must access our financial sector. 90% of India makes less than Rs 25,000 a month. A Rs 50,000 minimum balance implies a sum equal to 94% of Indians monthly income is to be left with the bank at all times, else a fee!" Jay Kotak tweeted on the social media platform X. Kotak pointed out that banks have a high physical cost of service, thus, digital banking is the solution. If banks are unable to adopt it, then fintechs will. "Implication: physical cost to serve may be high. Digital first is the way. If banks don't do it, fintechs will," he said. (Also Read: What Happens When You Don't Get PM Kisan Money For Lack Of Aadhaar Seeding?) Kotak emphasized that the financial sector should be accessible to all Indians, and every individual must have access to it. "Banking should be for all Indians," he said. ICICI Bank raises minimum average monthly balance to Rs 50K According to ICICI Bank's latest notification, the minimum average monthly balance requirement for metro and urban savings account holders will be increased to Rs 50,000 for new accounts, effective August 1. (Also read: How To Update EPFO Date Of Exit Online All By Yourself) The minimum average balance of ICICI Bank is the steepest among major Indian banks, having increased from the previous level of Rs 10,000. A penalty of 6 percent of the shortfall or Rs 500 will be imposed on customers who fail to maintain the minimum average balance.
News18
10-08-2025
- Business
- News18
'90% Of India Makes Less Than Rs 25k A Month...': Jay Kotak On ICICI Bank's MAB Hike
Last Updated: Jay Kotak criticized ICICI Bank's hike in minimum balance to Rs 50,000, noting 90% of Indians earn under Rs 25,000 monthly. He suggested a 'Digital First' approach for inclusivity. Jay Kotak, the co-head of Kotak811 and the son of Uday Kotak, has reacted sharply on ICICI Bank's announcement to hike the minimum balance requirement for savings account to Rs 50k from Rs 10k earlier opened on or after August 1, 2025. Kotak emphasized that every Indian must access financial sector, given that 90% of India makes less than Rs 25,000 per month. This move is aimed at expanding its premium customer base, a banker told NDTV Profit on condition of anonymity. The chart from the World Inequality Database (2021) shows India's stark income distribution, where 90% of the population earns below ₹25,000 per month. The bottom half earns less than ₹9,500, while only the top 5% make over ₹64,380, and the top 3% cross ₹1 lakh. Kotak, however, agreed that the physical cost to serve may be high, but he shared that 'Digital First' might be the solution. 'If banks don't do it, fintechs will. Banking should be for all Indians," he added. In metro and urban branches, the minimum average monthly balance (MAMB) will be Rs 50,000, up from the earlier Rs 10,000. In semi-urban branches, it will rise to Rs 25,000 from Rs 5,000, while in rural branches, the requirement will double to Rs 10,000 from Rs 5,000. The higher MAMB will apply only to new accounts opened after August 1. Customers who fail to meet the requirement will face a penalty of 6% of the shortfall or Rs 500, whichever is lower. The move marks a significant shift for one of India's largest private lenders, especially as other banks are softening their penalty structures — State Bank of India, for instance, has already scrapped all minimum balance charges. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
