Jay Kotak, son of veteran banker Uday Kotak, has raised his voice against ICICI Bank’s move to raise steeply the minimum balance requirement for savings accounts by 5 times to Rs 50,000.

Taking to X, he has said, without naming ICICI Bank, that 90% of Indians make less than Rs 25,000 a month.

“Every Indian must access our financial sector. 90% of India makes less than Rs 25,000 a month. A Rs 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!,” he wrote on X.

Jay, who heads Kotak Mahindra Bank’s digital banking arm Kotak 811, said a minimum balance of this quantum would imply that 94% of Indians’ monthly income would sit idle in the bank just to avoid penal charges. 

Since for banks the physical cost to serve is high, digital is the way, he noted.

“Implication: physical cost to serve may be high. Digital first is the way. If banks don’t do it, fintechs will. Banking should be for all Indians,” he tweeted on the social media platform.

ICICI Bank raised the minimum monthly average balance requirement for new savings accounts opened in metro and urban areas on or after 1 August by five times to Rs 50,000 from Rs 10,000.

For semi-urban locations, the minimum balance requirement has been increased five times to Rs 25,000. In rural branches, this has been increased to Rs 10,000.

Customers who fail to maintain the minimum balance criteria will be charged a penalty of 6% of the shortfall in the required balance or Rs 500, whichever is lower.