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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.
ICICI Bank announces MAB hike to Rs 50k.
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.
Criticizing the ICICI Bank’s MAB hike, Kotak said ” 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!”
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.
ICICI Bank’s MAB Penalties
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.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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