ICICI Bank faces netizen ire for raising min balance requirement to ₹50,000

ICICI Bank's decision to raise the minimum monthly average balance (MAB) for new savings accounts to ₹50,000 in metro and urban areas has drawn significant backlash on social media, with users citing

ICICI Bank, India’s second-largest private sector lender, is facing significant backlash from customers on social media after raising the minimum monthly average balance (MAB) for new savings accounts in metro and urban areas to ₹50,000, effective 1 August.

 

As per the bank, in metro and urban areas, the MAB will be ₹50,000, up from the earlier ₹10,000. Similarly, in semi-urban branches, it will rise to ₹25,000 from ₹5,000, while in rural branches, the requirement will double to ₹10,000 from ₹5,000.

 

MAB is the simple average of day-end balances for a calendar month.

 

“Majority of Indians earn below ₹25,000 monthly. So ICICI Bank wants them to keep two months’ salary as minimum balance in their account,” wrote a social media user on “X”. Another user wrote on X, “Every bank should have a basic savings account without any requirement of balance.”

   

Meanwhile, on LinkedIn, a user wrote, “₹50,000 is 2–3 months’ income for millions of Indians. In rural India, ₹10,000 is the difference between survival and debt. The role of banks should be financial inclusion — helping more people access the system, build savings, and grow wealth. ICICI Bank is doing the exact opposite: shutting the door on those who need it most.”

 

Other large private sector lenders such as HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Yes Bank, and others have a lower MAB requirement of ₹10,000 in metro and urban centres.

 

In contrast, state-owned lenders such as State Bank of India, Bank of Baroda, Union Bank of India, and others have waived the minimum account balance requirements recently for customer convenience.

 

Another user on LinkedIn wrote, “This major hike (in MAB) is expected to impact customers, especially from rural and semi-urban areas. Customers who are not able to maintain the required balance may face penalty charges, which could cause financial strain for low-income holders.”