ICICI Bank rolls back minimum balance hike after public backlash

ICICI Bank has rolled back its minimum average balance hike after public backlash, reducing it to Rs 15,000 for metro and urban customers, Rs 7,500 for semi-urban, and Rs 2,500 for rural areas. Penalties still apply for balances below the limit

New Delhi: Facing widespread outrage, ICICI Bank on Wednesday partially revised its minimum average balance (MAB) requirements, lowering them from Rs 50,000 to Rs 15,000 for new customers in metro and urban areas.

The move follows strong pushback from customers after the second-largest private lender in India had raised the MAB for new urban customers from Rs 10,000 to Rs 50,000.

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For semi-urban areas, the MAB for new customers has been reduced to Rs 7,500 from Rs 25,000, while rural customers now need to maintain Rs 2,500 instead of Rs 10,000, as previously recommended.

ICICI Bank clarified that customers maintaining balances below the prescribed limits will still incur penalties.

Earlier on Wednesday, HDFC Bank had updated its terms for new savings account holders, raising the MAB to Rs 25,000 effective August 1, 2025. For urban and metro branches, penalties are calculated at 6% of the shortfall or Rs 600, whichever is lower.

Meanwhile, major lenders such as SBI, PNB, and Canara Bank have removed the minimum balance requirement for savings accounts and waived penalties for non-maintenance.

RBI Governor Sanjay Malhotra stated that minimum balance limits for savings accounts are determined by banks and do not fall under regulatory jurisdiction. He noted that some banks have set the limit at Rs 10,000, others at Rs 2,000, while several have removed it entirely.

ICICI Bank had initially mandated that customers opening savings accounts on or after August 1 maintain a Rs 50,000 monthly average balance, while the MAB for existing customers remained Rs 10,000.