ICICI Bank’s New Minimum Balance Policy

ICICI Bank has recently announced a significant increase in the minimum average balance (MAB) requirement for its savings accounts, leading to widespread criticism from customers. The revised policy impacts account holders across metro, urban, semi-urban, and rural areas. Under the new structure, customers in metro and urban regions must maintain an average balance of Rs 50,000, a substantial rise from the previous Rs 10,000. In semi-urban areas, the requirement has increased to Rs 25,000 from Rs 5,000, while rural customers now need to maintain Rs 10,000 instead of Rs 5,000.

Impact on New Account Holders

The updated minimum balance requirements will apply only to new savings accounts opened after August 1, 2025. Customers failing to meet the MAB will incur a penalty of 6% of the shortfall or Rs 500, whichever is lower. This change has sparked a strong reaction online, with many users expressing their dissatisfaction and accusing the bank of targeting customers based on their financial status.

Public Reaction and Criticism

Numerous users have taken to social media to voice their concerns. Some have labeled the move as “elitist” and called for the Reserve Bank of India (RBI) to intervene. One user criticized the bank for “looting citizens” and threatened to close their account in favor of another bank with no minimum balance requirement. Others have highlighted the disparity between private and government banks, noting that while government banks are eliminating penalties, private banks like ICICI are increasing them.

Bank’s Justification and Customer Advisory

ICICI Bank has yet to respond to these criticisms. However, it is common for banks to impose minimum balance requirements to cover operational expenses and investments. Customers are advised to regularly check their balances to avoid penalties.