ICICI Bank Revises Minimum Balance After Customer Backlash
Date: August 13, 2025
ICICI Bank, India’s second-largest private lender, has rolled back its recent decision to sharply increase the Monthly Average Balance (MAB) requirement for new savings accounts. The move comes after widespread criticism from customers and financial experts.
What Changed?
Earlier Decision:
Effective from August 1, 2025, ICICI Bank had announced a steep hike in MAB for new savings accounts:
- Metro & Urban Areas: ₹50,000 (up from ₹10,000)
- Semi-Urban Areas: ₹25,000 (up from ₹5,000)
- Rural Areas: ₹10,000 (up from ₹5,000)
Revised Decision:
Following heavy backlash, the bank has now reduced the MAB to more reasonable limits:
- Metro & Urban Areas: ₹15,000
- Semi-Urban Areas: ₹7,500
- Rural Areas: ₹2,500
Why This U-Turn Happened
The sharp increase in MAB drew criticism on social media and from consumer rights groups, who argued that the change was unfair and burdensome for low- and middle-income customers. Responding to the feedback, ICICI Bank said the revised limits were made to better meet customer expectations and needs.
Key Details at a Glance
| Account Type | New MAB (Revised) | Previous MAB |
|---|---|---|
| Metro & Urban | ₹15,000 | ₹10,000 |
| Semi-Urban | ₹7,500 | ₹5,000 |
| Rural | ₹2,500 | ₹5,000 |
- The revised limits apply only to new savings accounts opened on or after August 1, 2025.
- Accounts opened before July 31, 2025, will continue under the old MAB rules.
- Exemptions: Salary accounts, senior citizen accounts, Basic Savings Bank Deposit Accounts (BSBDA), Pradhan Mantri Jan Dhan Yojana accounts, accounts for persons with special needs, pensioners below 60 years of age, and students from select institutions will not be affected.
- Penalties: If customers fail to maintain the required MAB, the penalty will be 6% of the shortfall or ₹500, whichever is lower.
What This Means for Customers
- Better Accessibility: The revised MAB ensures more customers can open and maintain savings accounts without facing high financial pressure.
- Customer-Centric Approach: The change reflects ICICI Bank’s willingness to listen to customer concerns and make adjustments accordingly.
- Competitive Banking: The new MAB structure now aligns more closely with other private banks, while still offering competitive services for customers.
Final Thoughts
ICICI Bank’s quick reversal shows the importance of balancing business strategies with customer inclusivity. While the original move may have been aimed at attracting higher-value deposits, it risked alienating a large section of customers. By lowering the MAB, the bank has demonstrated flexibility and a commitment to meeting customer needs.