Controversy Brews Over ICICI Bank's Hike in Minimum Average Balance Requirement
A civil society group challenges ICICI Bank's increase in the minimum average balance for new savings accounts, labeling it as unjust. The decision, which raises the balance to Rs 50,000, five times its previous amount, is viewed as contradicting the government's inclusive banking vision.
- Country:
- India
A civil society organization, 'Bank Bachao Desh Bachao Manch,' has urged the Finance Ministry to intervene in ICICI Bank's decision to increase the minimum average balance (MAB) for new savings accounts. The move jeopardizes the government's goal of inclusive banking, according to the organization.
The decision by the private lender has ignited controversy as the MAB for new accounts opened after August 1 has been raised from Rs 10,000 to Rs 50,000. The civil society group, led by conveners Biswaranjan Ray and Soumya Datta, deems the decision 'unjust and regressive.'
The group is calling for the immediate reversal of the decision and urges the government to safeguard depositors' interests, promoting more inclusive financial policies. In comparison, public sector banks generally maintain lower balance requirements, often waiving fees for Jan Dhan accounts, unlike their private counterparts.
(With inputs from agencies.)
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