MUMBAI: ICICI Bank has hiked the average minimum balance requirement for new savings accounts opened after Aug 1 to Rs 50,000 from Rs 10,000. This five-fold increase comes at a time when most public sector banks are waiving the minimum balance requirement.The step from the country’s second largest private bank has received widespread criticism. ICICI Bank did not comment on the move, but its website provides the new qualifying criteria. For semi-urban locations and rural locations, the balance requirement is Rs 25,000 and Rs 10,000, respectively. The bank last increased its minimum balance requirement over a decade ago. Since then, per capita income has more than doubled.The penalty for non-maintenance of minimum balance is Rs 500 or 6% of the shortfall between the required and actual balance.Many bankers were mystified by ICICI Bank’s move, which they said prima facie appeared aimed at filtering out low-value customers. They noted that such measures are generally taken by multinational banks because of their limited ability to service customers due to branch restrictions.It is also seen as unusual given that the bank has maintained a low-profile approach since CEO Sandeep Bakhshi took charge in 2018. The change under him has been characterised by a focus on risk management, product innovation, and expanding its digital footprint. ICICI Bank has also generally shunned attention.However, sources said statutory accounts like basic savings accounts and salary accounts will continue to be opened without a minimum balance requirement. The objective of the move was to increase the share of current and savings account balances and reduce pressure on operating costs. Sources added that the new savings account was redesigned as a new product, with a host of charges that earlier applied to savings accounts now waived for these accounts.