India’s largest private sector bank ICICI Bank, has closed about 2.5 lakh inactive demat accounts. These demat accounts were inactive for more than a year and each account had annual account maintenance charges outstanding that could not be recovered by the ICICI Bank.
According to an ICICI Bank official, ''The dues were written off in October 2011 after a ICICI Bank board decision. A savings account is linked to these demat accounts but the bank could not recover the depository service charges or dues from these accounts and therefore, has terminated the agreements and closed these accounts.""
ICICI Bank has neraly 18 lakh demat accounts after its recent move.
Some years ago, ICICI Bank was very aggressively offering 3-in-1 accounts. Open a savings bank account was also given a trading and demat account. So customers with no intention of trading were made to open demat accounts. Hence, the high number of inactive demat accounts.
The bank may have written off about Rs 30 crore. With the bank registering profit about Rs 1,500 crore in the last quarter, it has decided to write it off.
According to an ICICI Bank official, ''The dues were written off in October 2011 after a ICICI Bank board decision. A savings account is linked to these demat accounts but the bank could not recover the depository service charges or dues from these accounts and therefore, has terminated the agreements and closed these accounts.""
ICICI Bank has neraly 18 lakh demat accounts after its recent move.
Some years ago, ICICI Bank was very aggressively offering 3-in-1 accounts. Open a savings bank account was also given a trading and demat account. So customers with no intention of trading were made to open demat accounts. Hence, the high number of inactive demat accounts.
The bank may have written off about Rs 30 crore. With the bank registering profit about Rs 1,500 crore in the last quarter, it has decided to write it off.
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