ICICI Bank Hikes Minimum Balance to ₹50,000 for New Accounts
ICICI Bank raises minimum balance for new savings accounts to ₹50,000 in metros from August 1, 2025, sparking inclusion concerns and public backlash.
ICICI Bank Raises Minimum Balance Requirement: What It Means for You
ICICI Bank has revised its minimum average balance (MAB) norms for new savings accounts, drawing significant public attention and criticism. Effective August 1, 2025, the updated rules apply only to newly opened accounts, and the hike is seen as one of the steepest among major Indian banks.
New Minimum Balance Requirements
- Metro/Urban Branches: ₹50,000 (previously ₹10,000)
- Semi-Urban Branches: ₹25,000 (previously ₹5,000)
- Rural Branches: ₹10,000 (previously ₹5,000)
This marks a 400% increase in urban regions, a move aimed at premium customers but criticized for being exclusionary.
Penalty for Non-Compliance
- Account holders failing to maintain the required balance will face a penalty of 6% of the shortfall or ₹500, whichever is lower.
- Only three free cash deposits per month are allowed; after that, a ₹150 fee per transaction is charged.
- ATM charges and non-ICICI ATM use fees have also been revised.
Why the Hike? ICICI’s Strategic Intent
- Aim to position ICICI as the primary bank for customers by encouraging higher balances.
- Leverage the economic growth in metros, as disposable incomes rise. Notably, per capita income increased approximately 58% from 2014–15 to 2024–25. mint
- Serve as a risk management filter, dissuading fraudulent or “mule” accounts. mint
RBI’s Take: Banks Decide MAB Rules
During a financial inclusion conference, RBI Governor Sanjay Malhotra clarified that banks have full autonomy to set their own minimum balance norms. The RBI does not regulate MAB requirements. The Times of IndiamintIndia Today
Public Backlash
The steep rise has drawn criticism, notably from Jay Kotak, who warned the move risks alienating the middle class—arguing that about 90% of Indians earn less than ₹25,000 per month, making such requirements unrealistic. The Economic TimesNavbharat Times
Social media voices and personal finance forums reflected frustration.
Conclusion
ICICI Bank’s bold increase in MAB for new savings accounts—along with revamped fee structures—signals a strategic push toward premium customer segments and cost management. While existing account holders remain unaffected, prospective customers must review the new norms carefully to avoid penalties. For the middle class and financially sensitive customers, this shift could prompt a reevaluation of banking choices.