Social media reaction to the raising of the minimum balance by ICICI Bank has been swift and highly critical, with users calling the move “elitist” and “anti-middle class.”
Furious customers pointed out that the new ₹50,000 monthly minimum average monthly balance for urban accounts exceeds the average monthly salary in India. Many warned it could push lower-income customers out of the formal banking system, while several threatened to shift their accounts to banks with more lenient requirements, accusing ICICI Bank of prioritising wealthy customers over inclusivity.
ICICI Bank sharply increased the minimum average monthly balance requirement for new savings accounts from August 1 triggering widespread criticism from the public and calls for Reserve Bank of India intervention.
Under the new rules, customers opening accounts at metro and urban branches must now maintain an MAB of ₹50,000, compared with ₹10,000 earlier. For semi-urban accounts, the minimum has been raised to ₹25,000 from ₹5,000, while rural accounts now require ₹10,000, up from ₹5,000. Existing customers remain on the earlier thresholds. Accounts failing to meet the new limits will attract a penalty of 6% of the shortfall or ₹500, whichever is lower. Jan Dhan and Basic Savings Bank Deposit Accounts continue to be exempt under government regulations.
The hike positions ICICI Bank among the most expensive private-sector lenders for regular savings accounts. By comparison, HDFC Bank and Axis Bank maintain a ₹10,000 urban MAB, while several public sector banks have removed minimum balance penalties altogether to encourage financial inclusion.
The bank has also announced a revision in other service charges. Customers will now get only three free cash transactions per month across branches and cash recycler machines, after which ₹150 per transaction will apply.
Free monthly cash deposits and withdrawals are capped at ₹1 lakh, with excess charged at ₹3.50 per ₹1,000 or ₹150, whichever is higher. A fee of ₹50 will apply to deposits exceeding ₹10,000 during non-working hours at cash acceptor/recycler machines. At non-ICICI ATMs in six metro cities, charges have been set at ₹23 per financial transaction and ₹8.50 per non-financial transaction beyond three free transactions.
