ICICI Bank abolishes minimum balance requirement of Rs 50000 following public criticism, reduces the amount instead
In a move to address customer concerns, ICICI Bank has revised the minimum balance requirement for new savings accounts, effective from August 1, 2025. The changes come after an initial increase in the minimum account balance (MAB) sparked widespread outrage online.
The controversy began when ICICI Bank announced a sudden hike in the MAB for new savings accounts. For urban locations, the MAB was initially set at a high Rs 50,000, causing a stir among account holders. However, following heavy opposition and protests registered on social media, the bank decided to revise the requirement downward. As of the latest update, the MAB for urban areas now stands at a more manageable Rs 15,000[3].
Similarly, for semi-urban locations, the MAB has been reduced from an initially proposed Rs 25,000 to Rs 7,500[3]. In rural areas, the MAB has been fixed at Rs 2,500, down from the initial increase to Rs 10,000[3]. These changes reflect adjustments made following customer feedback[3].
It is important to note that existing customers continue with the earlier requirements, while new accounts are subject to these updated rules. Pension or student savings accounts in ICICI Bank are exempt from the minimum balance requirement and subsequent penalties.
The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, has stated that banks are free to decide their own minimum balance amounts. Some banks have also exempted certain customers from the minimum balance requirement, while others have set the minimum balance at varying amounts, with some banks setting it as low as Rs 2,000 and others at Rs 10,000.
The initial increase in the MAB by ICICI Bank led to a severe outrage online, with account holders heavily opposing the decision. The bank faced criticism for the sudden hike, especially since it affected new savings account holders. The revised minimum balance requirement is a step towards addressing these concerns and maintaining customer satisfaction.
Sources: [1] ICICI Bank website [2] Social media platforms [3] ICICI Bank press release
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