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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
ICICI Bank’s steep hike in minimum balance requirements and subsequent U-turn raise questions about whether these rules can and should endure.
ICICI Bank on Wednesday reversed its recent decision to raise the minimum average balance (MAB) requirement for new metro and urban consumers to Rs 50,000 for savings accounts—cutting it down to Rs 15,000 instead, after facing widespread criticism. While this is still an increase from the previous requirement of Rs 10,000, the response renews the debate around minimum balance rules, raising questions about their necessity and relevance.
The initially-proposed hike was significant—aside from Rs 50,000 in metro and urban areas, account holders in semi-urban branches were required to maintain Rs 25,000 (up from Rs 5,000, now rolled back to Rs …
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
The RBI’s unusually harsh order raises deeper questions about management credibility—and whether investors should take assurances at face value.
