ICICI bank cuts minimum balance requirement after widespread backlash

ICICI Bank has rolled back its steep monthly average balance hike for new savings accounts, easing requirements for metro, semi-urban, and rural customers after widespread criticism.

ICICI Bank has scaled down its controversial hike in minimum monthly average balance (MAB) requirements for new savings accounts, following a wave of customer outrage that swept across the country.

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The private lender had earlier announced a sharp increase, Rs 50,000 for metro and urban areas, Rs 25,000 for semi-urban, and Rs 10,000 for rural customers, that was to take effect from August 1, 2025. The proposal immediately triggered strong reactions from account holders, who feared they would struggle to meet such high balances without facing penalties.

Revised MAB:

Now, the bank has revised the figures to more affordable levels: Rs 15,000 for metro and urban customers, Rs 7,500 for semi-urban, and Rs 2,500 for rural areas. The changes apply to new savings accounts and reflect what the bank described as “valuable feedback” from its customers.

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The initial hike would have made ICICI Bank the most expensive among domestic banks for maintaining a savings account, outstripping even its biggest private and public sector rivals. Critics warned it risked alienating middle-class, semi-urban, and rural customers, segments that still form a significant portion of India’s banking base.

By revisiting the decision, ICICI Bank has positioned itself as responsive to public sentiment, while still aiming to sustain operational efficiency. Industry analysts see the episode as part of a wider trend where private banks are chasing higher-value customers, even as they must tread carefully to avoid alienating the mass market.

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