Latest news with #non-ICICI
Time of India
3 days ago
- Business
- Time of India
Rs 50k to Rs 15k: ICICI bank rolls back min account balance rule
MUMBAI: ICICI Bank has rolled back its rule requiring new savings accounts opened after Aug 1 to maintain a monthly average balance (MAB) of Rs 50,000 and has revised the threshold to Rs 15,000. Tired of too many ads? go ad free now The move follows a social media backlash against the higher balance requirement, which was criticised for making banking exclusive. The bank said it has revised its schedule of charges and MAB requirements following customer feedback. The changes do not apply to salary accounts, senior citizens above 60 years, basic accounts/PM Jan Dhan Yojana accounts, or those opened before July 31, 2025. Meanwhile, HDFC Bank denied reports that it has hiked MAB requirement to Rs 25,000. The bank said that the Rs 25,000 limit is for its 'savings max' account and the average monthly balance for the regular savings account continues to be Rs 10,000. For resident Indians below 60 years, ICICI Bank's MAB is Rs 15,000 in metro and urban areas, Rs 7,500 in semi-urban locations, and Rs 2,500 in rural areas. Pensioners below 60 and students from 1,200 listed institutes are exempt from MAB. Non-maintenance will attract a charge of 6% of the shortfall or Rs 500, whichever is lower. The bank will offer three premium programmes - Select Banking, Wealth Management and Private Banking - with higher deposit and investment thresholds, which waive MAB penalties if met. Key charges include Rs 23 per ATM withdrawal beyond five free transactions at ICICI Bank machines, and varying free limits at non-ICICI ATMs depending on location. Cash deposits and withdrawals at branches are free for up to three transactions.
Economic Times
5 days ago
- 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.
Time of India
5 days ago
- Business
- Time of India
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 X. Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Kotak 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) What changes from 1 August 2025 ICICI Bank has announced that new customers opening savings accounts from 1 August 2025 will face higher monthly average balance requirements. Live Events 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. Penalties and fees 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 transaction. Cash 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 charges. ATM 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 transactions. RBI leaves decision to banks Reserve 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.' Industry split on approach 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 entirely. Private 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 margins. This divergence signals a growing gap between private and public sector strategies on financial inclusion and customer retention.
Mint
01-07-2025
- Business
- Mint
Financial rule change from July 1: Pan, Aadhar, ITR, train booking, credit card fees
Starting July 1, a range of new rules will come into effect that could impact your everyday transactions, from filing income tax returns and applying for a PAN card to booking train tickets and using your credit card. Here's a breakdown of the major changes that will affect taxpayers, bank customers, and railway passengers across India: From July 1, the Central Board of Direct Taxes (CBDT) has made Aadhaar verification compulsory for all new PAN card applications. Until now, applicants could submit other government-issued IDs such as a driver's licence or birth certificate. Existing PAN holders who haven't yet linked their PAN with Aadhaar have until December 31 to do so. Failure to comply could result in PAN deactivation, impacting tax filings and financial transactions. Booking Tatkal train tickets will now require Aadhaar-based verification. The Indian Railways has also introduced new safety measures for all ticket bookings. From July 15, two-factor authentication will be mandatory for both online and counter bookings. This includes a one-time password (OTP) sent to the registered mobile number. Additionally, the Railways is reportedly considering a minor fare hike, with an increase of 1 paisa per km for non-AC and 2 paise for AC coaches. In a relief to taxpayers, the Income Tax Department has extended the deadline for filing Income Tax Returns (ITRs) from July 31 to September 15. The extension offers an additional 46 days to salaried individuals to complete their filings. Experts advise filing early to avoid last-minute technical glitches that are common as the deadline nears. Major banks including SBI, HDFC Bank, and ICICI Bank are revising their credit card terms, charges, and services starting July 1. The air accident insurance benefit offered on cards like SBI Elite and SBI Miles will be discontinued. A new method of calculating minimum amount due (MAD) for monthly bills will be introduced. A 1% transaction fee (capped at ₹ 4,999) will apply to: 4,999) will apply to: Rent payments Online gaming spends over ₹ 10,000 10,000 Utility bill payments exceeding ₹ 50,000/month (except insurance) 50,000/month (except insurance) Loading digital wallets with more than ₹ 10,000 in a single transaction First 5 ATM withdrawals at ICICI ATMs remain free; post that, a ₹ 23 charge applies. 23 charge applies. At non-ICICI ATMs, free limits are: 3 in metro cities 5 in non-metro areas Post-limit charges: ₹ 23 for withdrawals, ₹ 8.5 for balance/non-cash inquiries ₹ 125 for cash withdrawal 125 for cash withdrawal ₹ 25 for non-financial transactions 25 for non-financial transactions 3.5% foreign currency markup IMPS (online transfers) charges revised to between ₹ 2.5 and ₹ 15 based on amount. First 3 transactions at Cash Recycler Machines (CRMs) free Beyond that: Rs150 per transaction Monthly cash deposits over ₹ 1 lakh will attract a charge of ₹ 150 or ₹ 3.5 per ₹ 1,000, whichever is higher These changes aim to tighten compliance, streamline digital services, and align with security best practices. However, they may also bring additional costs and inconvenience for consumers who aren't prepared.
Time of India
29-06-2025
- Business
- Time of India
From ATM charges to Aadhaar OTP for Tatkal booking: Important financial rule changes from July 2025
New financial rules from July 2025: Starting July 2025, several important rules related to money, banking, Aadhaar, PAN cards, GST, and digital payments are being updated. These financial rule changes will directly impact how citizens and businesses in India handle transactions, tax filings, railway bookings, and other day-to-day services. Here's a detailed look at all the key financial updates coming into effect this month. Aadhaar Now Mandatory for New PAN Card Applications From 1 July 2025, the Income Tax Department has made it compulsory to link your Aadhaar while applying for a new PAN card. Earlier, applicants could submit other ID proofs and a birth certificate, but now, only Aadhaar will be accepted. This rule, introduced by the Central Board of Direct Taxes (CBDT), aims to reduce fake PAN cards and make the verification process more accurate and secure. ITR deadline extended CBDT has extended the deadline of income tax return filing for Assessment Year 2025-26 to September 15, according to IANS report. Aadhaar OTP Needed for Tatkal Railway Bookings One of the most important rules from July 2025 is the new IRCTC Tatkal ticket booking system. From 15 July, anyone booking Tatkal tickets online or at railway counters must complete an OTP (One-Time Password) verification using their Aadhaar number. To make bookings fairer and prevent misuse: Agents won't be allowed to book Tatkal tickets during the first 30 minutes after the booking window opens. Booking timings for Tatkal: AC Class: 10:00 AM to 10:30 AM Non-AC Class: 11:00 AM to 11:30 AM These updates are expected to benefit regular passengers by giving them better access during peak travel times. Axis Bank Increases ATM and Account Charges From 1 July 2025, Axis Bank customers will see new charges for using ATMs and maintaining accounts. Key changes include: ATM transactions beyond the free limit will now cost Rs 23 per transaction, up from the earlier Rs 21. This applies to both Axis and non-Axis Bank ATMs. Charges apply for both withdrawals and balance enquiries if the limit is crossed. These changes affect savings accounts, NRI accounts, and Trust accounts. ICICI Bank Introduces New Service Fees ICICI Bank has also introduced new financial rule changes from July 2025. The updated charges include: Metro cities: 3 free transactions per month at non-ICICI ATMs. Non-metro areas: 5 free transactions per month. After this limit, customers will pay: Rs 23 for financial transactions Rs 8.50 for non-financial transactions -International ATM withdrawals: Rs 125 per transaction - Cash deposits/withdrawals at branches: Free only 3 times a month, after which Rs 150 will be charged per transaction - New charges will also apply to IMPS money transfers Customers should check their account details and adjust their transaction habits to avoid extra fees. SBI and HDFC Bank Revise Credit Card Charges Major financial rule changes in July 2025 also affect credit card users. SBI Credit Card Changes: From 15 July 2025, SBI Card will remove complimentary air accident insurance on some premium cards like ELITE and PRIME. The Minimum Amount Due (MAD) will now include GST, EMIs, and other charges, making it more expensive if not fully paid. HDFC Bank Updates: 1% fee will be charged on: Rent payments Wallet reloads above Rs 10,000 Utility bills above Rs 50,000 Gaming spends above Rs 10,000 Maximum fee: Rs 4,999 per transaction Reward Points: Users can earn up to 10,000 points per month for insurance premium payments These changes aim to limit misuse and encourage responsible credit usage. UPI Chargeback Process Made Simpler The National Payments Corporation of India (NPCI) has simplified the UPI chargeback process to help users quickly resolve payment failures. From July 2025: Banks can now reprocess denied chargebacks without waiting for NPCI's manual approval. This will reduce refund delays and help customers, especially small merchants and digital users, get quicker resolutions. This change is part of broader efforts to make UPI more user-friendly and trustworthy. GST Return Filing Gets Stricter From July 2025, the Goods and Services Tax Network (GSTN) will introduce strict new rules for filing GST returns. Key changes include: Monthly GSTR-3B forms will become non-editable after submission. A three-year deadline has been added, after which no return can be filed, even if it was missed earlier. These rules apply to forms like GSTR-1, 3B, 4, 5, 5A, 6, 7, 8, and 9. These financial rule changes aim to ensure better compliance, reduce fraudulent filings, and avoid mismatches during audits. Changes to Small Savings Interest Rates The Indian government is expected to revise small savings scheme interest rates for the quarter from July to September 2025. This may affect schemes like: Public Provident Fund (PPF) National Savings Certificates (NSC) Senior Citizens Savings Scheme (SCSS) Sukanya Samriddhi Yojana (SSY) Investors are advised to check the new rates once announced and plan accordingly. These important rules from July 2025 cover many aspects of daily life—from booking train tickets and filing taxes to using ATMs and credit cards. Whether you're a salaried individual, a small business owner, or a student using UPI, it's important to stay informed and make the necessary updates. Don't forget to: Link your Aadhaar with PAN Review your bank's ATM and service charges Update your GST filing strategy Keep track of credit card benefits and limits These July 2025 financial rule changes are designed to make systems safer, more transparent, and more efficient for everyone. For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.
