ICICI Bank , one of India's leading private sector banks, has made headlines with two significant developments: a substantial increase in minimum balance requirements for savings accounts and a penalty imposed by the Reserve Bank of India (RBI).

Steep Rise in Minimum Balance Requirements

ICICI Bank has announced a significant increase in its minimum average monthly balance requirements for savings accounts, effective August 1, 2025. The new structure is as follows:

This move positions ICICI Bank's minimum balance requirement as the highest among domestic banks, surpassing HDFC Bank's ₹10,000 requirement for urban and metro areas.

A senior banker explained that this strategy aims to capture a larger share of the affluent market and increase cross-selling opportunities for products like insurance and brokerage services to wealthier customers. The decision reflects the bank's focus on wealth management as competition intensifies from mutual funds and other financial service providers targeting affluent savers.

RBI Imposes Monetary Penalty

In a separate development, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹75 lakh on ICICI Bank Limited. The penalty, announced on August 8, 2025, is for non-compliance with certain RBI directions.

The RBI's order, dated August 7, 2025, cites two specific violations:

1. Failure to carry out valuation of properties by independent valuers in certain mortgage loans.
2. Opening and maintaining certain current accounts in contravention of extant regulatory requirements.

The penalty was imposed following a Statutory Inspection for Supervisory Evaluation (ISE 2024) conducted by the RBI, which referenced the bank's financial position as of March 31, 2024.

ICICI Bank was given an opportunity to respond to the charges through a show-cause notice and personal hearing. After considering the bank's replies and submissions, the RBI found the charges to be sustained, warranting the monetary penalty.

The RBI emphasized that this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

As ICICI Bank implements its new minimum balance requirements and addresses the regulatory compliance issues, it remains to be seen how these developments will impact its market position and customer relationships in the competitive Indian banking sector.

ICICI Bank , one of India's leading private sector banks, has been hit with a ₹75 lakh monetary penalty by the Reserve Bank of India (RBI) for non-compliance with regulatory directives. The central bank's action comes in response to two specific violations identified during a Statutory Inspection for Supervisory Evaluation.

Regulatory Breaches

The RBI's order outlines two primary areas of non-compliance:

1. Property Valuation Issues: ICICI Bank failed to carry out property valuations by independent valuers for certain mortgage loans, violating RBI's directions on 'Valuation of Properties - Empanelment of Valuers'.

2. Current Account Violations: The bank opened and maintained certain current accounts in contravention of regulatory requirements, specifically breaching the RBI's guidelines on 'Opening of Current Accounts by Banks – Need for discipline'.

Regulatory Action

The monetary penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. This action followed a thorough process:

• The violations were identified during the Statutory Inspection for Supervisory Evaluation (ISE) conducted by RBI.
• ICICI Bank was issued a show-cause notice and given an opportunity to respond.
• The bank provided a reply, made additional submissions, and participated in a personal hearing.
• After considering all evidence, the RBI found the charges against ICICI Bank to be sustained, warranting the imposition of the monetary penalty.

RBI's Clarification

The central bank emphasized that this penalty is based on regulatory compliance deficiencies and does not pronounce upon the validity of any transactions or agreements between the bank and its customers. Furthermore, the RBI stated that this monetary penalty is without prejudice to any other action that may be initiated against ICICI Bank.

ICICI Bank's Disclosure

In compliance with regulatory requirements, ICICI Bank disclosed this penalty through a filing to the stock exchanges. The bank acknowledged the receipt of the RBI's order and provided details of the penalty in its disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This incident underscores the importance of strict adherence to regulatory guidelines in the banking sector and highlights the RBI's commitment to maintaining discipline in the financial system. It serves as a reminder for financial institutions to strengthen their compliance mechanisms and internal controls.