"Intensified Online Discussion Surrounds Strict Minimum Balance Requirements Imposed by ICICI Bank"
ICICI Bank has announced a significant increase in the minimum average balance (MAB) requirement for its savings accounts, sparking widespread criticism from customers. The new MAB requirements were set to take effect starting August 1, 2025, but following a strong backlash, the bank has revised the requirements downward.
The initial increase in MAB was substantial, with new accounts in metro and urban areas required to maintain a balance of Rs 50,000, up from the previous Rs 10,000. In semi-urban areas, the MAB was raised to Rs 25,000 from Rs 5,000, while rural areas saw an increase to Rs 10,000 from Rs 5,000. However, existing customers were not affected by the changes, as they retained the old limits.
The new MAB requirements faced criticism from customers who found them unaffordable or inconvenient, particularly in urban areas. The increases represented one of the steepest hikes among private sector banks, causing dissatisfaction among customers. In addition to the MAB increases, ICICI Bank also revised charges on cash transactions at branches and ATM usage, further adding to customer dissatisfaction.
The criticism prompted ICICI Bank to revise the MAB requirements downward on August 13, 2025. The new MAB for metro and urban customers was reduced to Rs 15,000, while the MAB for semi-urban customers was lowered to Rs 7,500. Rural accounts saw the most significant reduction, with the MAB lowered to Rs 2,500. The bank stated that the revision was made in response to valuable customer feedback, aiming to better align with their expectations.
Some customers have accused ICICI Bank of "filtering customers" based on their wealth and have called the move "elitist." Others have gone so far as to threaten to close their accounts and move to another bank. Some users have also suggested that the new MAB requirement may be a violation of Article 14 of the Indian Constitution, which guarantees equality before the law.
ICICI Bank has advised account holders to check their balances and ensure compliance with the new MAB requirements to avoid penalty fees. The bank has not yet responded to requests for comment regarding the criticism and backlash.
This situation illustrates the bank's responsiveness to customer concerns after implementing a major policy change. Banks impose minimum balance requirements to cover their operational expenses and investments, but it is clear that the initial increases in MAB were too high for many customers. The bank's decision to revise the requirements downward demonstrates a willingness to listen to customer feedback and adjust policies accordingly.
- In response to widespread criticism and backlash, ICICI Bank reduced the new minimum average balance (MAB) for metro and urban customers from the proposed Rs 50,000 to a more affordable Rs 15,000.
- The revision of ICICI Bank's MAB requirements for personal-finance accounts shows the bank's commitment towards aligning their policies with customers' expectations, addressing concerns about financial burden and elitism.
