Starting August 1, 2025, ICICI Bank has significantly increased the minimum average monthly balance (MAB) for new savings accounts. For metro and urban customers, the MAB is now ₹50,000, up from ₹10,000. Semi-urban customers must maintain ₹25,000 instead of ₹5,000, and rural account holders now require ₹10,000, up from ₹5,000.
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Rules Apply to New Accounts Only
The revised rules will apply exclusively to accounts opened on or after August 1, 2025. Existing account holders will continue under the previous limits. For those who fail to meet the new requirement, the penalty will be 6% of the shortfall or ₹500, whichever is lower. This change positions ICICI Bank among the most expensive private sector banks for maintaining regular savings accounts.
Comparisons With Other Banks
The hike is especially notable given that many public sector banks have removed minimum balance penalties to encourage financial inclusion. For example, HDFC Bank and Axis Bank continue with a ₹10,000 minimum balance requirement for urban customers, making ICICI Bank an outlier in terms of stringency.
Customer Backlash
The move has triggered significant criticism online. Many users have called the hike elitist and discriminatory, arguing it creates barriers for middle and lower-income customers. Social media comments highlighted that the ₹50,000 urban minimum exceeds the average monthly salary in India. Some customers have even threatened to close their ICICI Bank accounts in favour of banks with lower requirements.
One user wrote, “In a country where 23 crore people live below the poverty line, ICICI thinks ₹50,000 is a minimum. Masterstroke!” Another remarked, “Government banks are removing minimum balance penalties while private banks are increasing them. This is the disadvantage of privatisation.”
Supporters Defend the Move
Not all reactions have been negative. Some users argue that ICICI Bank has the right to define its target customer base and boost fee income. Supporters claim the decision is based on data analysis to avoid losing too many customers and is aligned with the bank’s shareholder-focused approach rather than a social mandate.
With the debate ongoing, it remains to be seen if ICICI Bank will adjust the policy in response to public pressure or maintain its stance on higher minimum balances.
