ICICI Bank Reverses Minimum Balance Hike After Customer Feedback
Following "valuable feedback" from customers, ICICI Bank has rolled back a recent steep hike in its minimum average balance (MAB) requirement for new savings accounts. The MAB for urban locations, which was increased to ₹50,000 on August 1, has been revised down to ₹15,000. Requirements for semi-urban and rural areas were also lowered. The bank stated the reversal was to "better reflect their expectations and preferences." The change does not apply to salary, senior citizen, or Jan Dhan accounts.
Unpacked:
ICICI Bank increased the minimum average balance to align with its business strategy and possibly to manage operational costs or encourage higher deposits, but did not publicly specify detailed reasons. The hike was among the steepest in the industry and applied only to new accounts opened after August 1, 2025.
Other Indian banks set minimum average balances ranging from ₹2,000 to ₹10,000. Even after the rollback, ICICI Bank’s new urban requirement of ₹15,000 is still higher than many peers, although no longer the steepest.
Customers failing to meet the minimum average balance are charged a penalty equal to 6% of the shortfall or ₹500, whichever is lower. This penalty structure applies to the newly revised balances for accounts opened after August 1, 2025.
Salary, senior citizen, and Jan Dhan accounts are exempt because they serve specific segments—such as wage earners, pensioners, and low-income individuals—who may not consistently maintain high balances. This helps promote financial inclusion and protects vulnerable groups.