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Mumbai, August 14, 2025 : In a significant move reflecting the power of public opinion, ICICI Bank has swiftly rolled back its controversial minimum balance requirement for savings accounts in urban and metro areas, reducing the threshold from ₹50,000 to ₹15,000. The decision comes only days after the proposed hike sparked discontent among millions of customers and ignited furious debates across social media platforms.
ICICI Bank’s original plan to mandate a monthly average balance (MAB) of ₹50,000 for urban savings accounts, announced last week, drew scathing criticism for risking the financial inclusion of the middle and lower-income segments. Within hours, customers voiced that the steep hike would strain their ability to maintain basic banking services, citing a lack of flexibility and equity compared to peers in the public sector.
Responding to the uproar, the bank has also reformed its policies for semi-urban and rural clients: new customers in semi-urban zones now need only maintain ₹7,500, and those in rural areas, just ₹2,500. Industry insiders believe these changes will ease banking access for millions and foster greater participation in the digital economy.
The controversy has sparked wider conversations about banking inclusivity and consumer rights. While public sector giants like SBI, Canara Bank, and Punjab National Bank have already abolished minimum balance penalties for basic savings accounts, many private banks—including ICICI—have maintained stricter requirements. Experts predict a ripple effect, spurring other private lenders to reassess their stance amid rising competition and shifting customer expectations.
Why does minimum average balance matter? For banks, it sustains account maintenance and operational costs. For customers, it often determines access to services and financial flexibility. ICICI Bank’s rapid policy reversal highlights a broader shift toward more customer-centric practices in India’s evolving financial landscape.