ICICI Bank has rolled back its steep minimum balance hike after facing widespread public criticism earlier this week. The lender announced on August 13 that new minimum balance requirements for savings accounts will be significantly lower than those outlined in its earlier notice.
For urban and metro areas, the minimum monthly average balance (MAB) has been reduced to ₹15,000 from the previously announced ₹50,000. In semi-urban areas, the requirement is now ₹7,500, while in rural areas it has been lowered to ₹2,500 — even below the earlier ₹5,000 threshold. The revised rules apply to accounts opened on or after August 1. Accounts opened before this date will continue under the old criteria.
Customers who fail to maintain the MAB will be charged a penalty of 6 percent of the shortfall or ₹500, whichever is lower, the bank said on its website.
The move comes after ICICI Bank’s earlier decision to raise the minimum balance for urban and metro accounts fivefold to ₹50,000 drew sharp criticism from customers, influencers, and industry voices. Prominent business figure Jay Kotak noted that the previous requirement would have forced customers to leave nearly an entire month’s income idle in their accounts. Social media users called the decision “elitist” and urged account holders to shift to rival banks offering more lenient terms.
(By arrangement with livemint.com)
