Online Outcry Over ICICI Bank's New Minimum Account Balance Requirement Sparks debate on Web
In a move that has sparked controversy, ICICI Bank has announced a significant increase in the minimum average balance (MAB) requirement for its savings accounts. The new MAB will take effect from August 1, 2025, and will vary depending on the location of the account holder.
In metro and urban areas, the new MAB requirement for new savings bank accounts will be Rs 50,000, a sharp increase from the previous Rs 10,000. In semi-urban areas, the requirement will be Rs 25,000, up from earlier Rs 5,000. However, in rural branches, the increase is more modest, with customers required to maintain a minimum average balance of Rs 10,000, up from the previous Rs 5,000.
The bank has stated that the increase is part of a cost-management and operational strategy, aiming to align with updated cash transaction policies and service charges, and manage operational costs and profitability associated with low-balance accounts. This strategy includes a broader revision of cash transaction charges and ATM usage fees alongside the MAB hike.
However, the move has faced criticism and strong customer backlash. Many have expressed concerns that the steep rise makes banking less accessible, particularly for those unable to maintain such high balances in savings accounts traditionally meant for everyday use. Following this negative feedback, ICICI Bank has revised the MAB requirements downwards. As of August 13, 2025, the requirements for new urban accounts have been reduced to Rs 15,000, and for semi-urban areas, the requirement has been reduced to Rs 7,500, from the initially imposed Rs 50,000 and Rs 25,000 respectively.
Critics argue that the hike is one of the steepest among private banks, potentially excluding lower-income customers, and forcing customers to either maintain high balances or incur penalty fees. This contradicts the typical purpose of savings accounts being widely accessible.
Some users have accused the bank of "filtering customers" based on their wealth, being elitist, and even violating article 14 of the Indian constitution. Others have gone as far as to threaten to close their accounts and move to another bank, accusing ICICI Bank of "loot of citizens."
ICICI Bank has advised account holders to check their balances and ensure compliance to avoid charges. The bank has not yet responded to requests for comment.
This episode highlights the sensitivity around minimum balance policies and the challenges banks face in balancing profitability with customer accessibility. It remains to be seen how ICICI Bank will address the concerns raised by its customers and whether other banks will follow suit with similar changes to their minimum balance requirements.
In response to customer backlash, ICICI Bank has revised the minimum average balance (MAB) requirements for new savings accounts in urban areas, reducing it from Rs 50,000 to Rs 15,000 as of August 13, 2025. Similarly, in semi-urban areas, the requirement has been reduced from Rs 25,000 to Rs 7,500 during the same timeframe. These changes in the MAB requirements are significant for those concerned about the accessibility of personal-finance services.
