ICICI Bank Cuts Minimum Balance After Customer Backlash
Following widespread public criticism, ICICI Bank has significantly rolled back its earlier plan to raise the minimum average balance (MAB) requirements for new savings accounts across India.
What Changed
Initially, from August 1, the bank had increased the MAB for metro and urban areas from Rs 10,000 to Rs 50,000 — a fivefold hike. Semi-urban customers were asked to maintain Rs 25,000 instead of Rs 5,000, and rural account holders faced a new Rs 10,000 requirement, up from Rs 2,500. These changes carried penalties of 6% on shortfalls or Rs 500, whichever was lower.
Reversal After Backlash
In response to a massive customer backlash, including calls for boycott and accusations of elitism, the bank reversed the steep hikes. It has now set new MAB levels at Rs 15,000 for metro and urban areas, Rs 7,500 for semi-urban branches, and Rs 2,500 for rural locations. These figures apply only to new savings accounts opened from August 1, 2025. Existing account holders remain unaffected.
Exemptions and Enforcement
The bank clarified that the MAB provisions do not affect salary accounts, accounts opened before July 31, or certain categories like senior citizens and students in selected institutes. Nevertheless, non-compliance by new account holders will still incur the standard penalty — 6% of the shortfall or Rs 500.
What It Means for Customers
This move underscores ICICI Bank’s responsiveness to public sentiment and reopens the discussion on banking accessibility. With peers like SBI having removed minimum balance norms entirely, and HDFC maintaining relatively modest thresholds, the rollback helps partially realign ICICI with broader financial inclusion trends.
