ICICI Bank has rolled back its earlier decision to sharply increase the minimum balance requirement for new savings accounts. On Wednesday, the bank announced that the minimum average balance (MAB) for customers in metro and urban areas will now be ₹15,000 instead of the previously announced ₹50,000.
The change comes after widespread criticism from customers, who said the earlier hike was too steep and would create unnecessary financial pressure, especially for middle-class, semi-urban, and rural account holders.
According to the revised plan, the new MAB requirements will be:
₹15,000 for customers in metro and urban areas
₹7,500 for customers in semi-urban areas
₹2,500 for customers in rural areas
These limits replace the much higher figures announced earlier—₹50,000 for metro and urban areas, ₹25,000 for semi-urban areas, and ₹10,000 for rural customers. The earlier plan, announced just last week, was supposed to take effect from August 1, 2025, but quickly faced strong opposition.
In a statement, ICICI Bank said:
“We had introduced new requirements for monthly average balance for new savings accounts opened from August 1, 2025. Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences.”
When ICICI Bank first announced the ₹50,000 MAB for metro and urban customers, it became clear that the bank would have the highest minimum balance requirement among major domestic banks. This amount was much higher than what other large banks, such as HDFC Bank and the State Bank of India (SBI), currently require.
The move was seen as out of step with the broader trend in the banking industry, where many banks have been rationalising or lowering penalties related to non-maintenance of MAB. Customers and financial experts argued that such a high minimum balance was not practical for the majority of account holders, particularly in areas where average incomes are lower.
ALSO READ: Significance of IAF downing an ELINT, AEW&C aircraft in Operation Sindoor
ALSO READ: India’s strategic options to counter Trump’s tariff pressure
The announcement of the steep hike drew a wave of criticism on social media and from banking customers across the country. Many expressed concerns that they would struggle to maintain such a high balance in their accounts, which could lead to penalties or even force them to close their accounts.
The strongest reactions came from customers in semi-urban and rural areas, where banking services are often limited and savings accounts are a primary way to manage daily financial needs. People feared that the high MAB requirement could discourage savings, increase the financial burden on lower-income families, and limit access to banking services.
In light of the backlash, ICICI Bank decided to scale back the hike significantly. The revised MAB levels are now closer to those of competing banks, making it easier for customers to maintain their accounts without incurring penalties.
The bank has indicated that the new structure aims to balance operational requirements with customer convenience. By lowering the threshold, ICICI Bank hopes to maintain customer trust while still ensuring the financial sustainability of its savings account services.
The decision is expected to bring relief to new customers planning to open savings accounts with ICICI Bank from August 1, 2025, onwards. The lower MAB limits mean that people will not have to lock away as much money in their accounts just to avoid penalties. This is particularly important for those who use savings accounts for everyday transactions rather than as a place to hold large sums.
While the revised limits are still higher than those offered by some public sector banks, they are much more manageable than the earlier figures. The change is likely to prevent a mass shift of customers to other banks, which could have happened had the ₹50,000 limit been enforced.
The quick policy reversal highlights the influence of customer feedback on banking decisions. In this case, the strong public response appears to have directly led to a rethink by ICICI Bank. It also sends a signal to other banks that sharp increases in fees or account requirements can provoke backlash, especially when they are out of line with industry norms.
For now, ICICI Bank customers—particularly those in smaller towns and rural areas—will benefit from the lower minimum balance requirements. The bank’s move to reconsider its earlier decision could help restore goodwill and prevent the loss of long-term customers.
Copyright © © 2022 Copyright. All Rights Reserved with Arth Parkash