ICICI Bank backtracks on new account balance requirement after backlash

Over the last weekend, ICICI Bank faced a huge social media backlash after it emerged that one of the country’s largest private sector lenders had raised its minimum monthly average balance requirement fivefold to Rs 50,000 from Rs 10,000 for new savings accounts opened in metro and urban branches from August 1. Well, now the lender has backtracked on that move, albeit partially, citing customer feedback.

 

Now, the minimum monthly average (MAB) in metro and urban branches has been set at Rs 15,000. It will be Rs 7,500 in semi-urban locations (this had been raised to Rs 25,000 earlier), and for rural locations it will be Rs 2,500 (compared with Rs 10,000 set earlier).

 

Why has the lender backtracked?

 

The lender had faced severe criticism for its move to increase MAB to Rs 50,000, with several people pointing out that the majority of Indians earned below Rs 25,000 per month. One user said that they may close the account and rather invest Rs 50,000 than let it remain in a savings account. Even some other bankers had weighed in on ICICI’s unexpected move.

 

That criticism, perhaps, or as the bank calls it, customer feedback, has had its effect, with the lender now reducing the new MAB requirement significantly.

 

“We had introduced new requirements for the 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,” the lender said.

 

It's worth noting that the MAB requirements won’t be applicable to salary accounts, senior citizens/pensioners above 60 years, BSBDA (Basic Savings Bank Deposit Account) under the Pradhan Mantri Jan Dhan Yojana and accounts for people with special needs. As such, these revisions are not applicable to accounts opened before July 31, 2025.

 

How does ICICI Bank compare with other lenders?

 

At the country’s largest private sector lender HDFC Bank, the MAB requirement is Rs 10,000 or a fixed deposit of Rs 1 lakh for minimum one year one day period in urban branches; Rs 5,000 or Rs 50,000 in fixed deposit in semi-urban branches and Rs 2,500 or a Rs 25,000 FD in rural branches.

 

For its savings max accounts, HDFC Bank mandates an MAB requirement of Rs 25,000 across metro/ urban, semi-urban or rural branches.

 

At Axis Bank, the minimum balance requirement for its easy access savings account is Rs 12,000 for metro and urban locations, Rs 5,000 for semi-urban and Rs 2,500 for rural areas.

 

At the country’s largest lender, the State Bank of India, there is no monthly average balance requirement for their savings bank account. Several other public sector banks have also, in the past, done away with penalties for not maintaining a minimum balance. 

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