"ICICI Has Gone Nuts!" Customers Express Anger Over Steep Hike in Minimum Balance Rule

ICICI Bank’s decision to sharply increase the minimum average balance (MAB) requirement for savings accounts has sparked strong criticism from citizens.

In a statement, the country’s second-largest private lender announced that customers in metro and urban areas will now be required to maintain an average balance of ₹50,000—a steep jump from the previous ₹10,000. For new customers in semi-urban areas, the MAB has been set at ₹25,000, while in rural areas it has been raised to ₹10,000 from ₹5,000 in both categories.

The revised rules apply only to new savings bank accounts opened after August 1, 2025. Failure to maintain the required MAB will attract a penalty of 6% of the shortfall or ₹500, whichever is lower.

The move has drawn widespread outrage online. Many customers accused the bank of “filtering” clients based on wealth, with some branding the decision “elitist.” Several demanded Reserve Bank of India intervention.

One user on X (formerly Twitter) wrote, “This is sheer loot. ICICI will earn interest on huge sums at the public’s expense. I’m closing my account and moving to another bank where the MAB is nil.”

Another commented, “This is public loot—denying banking access to the poor and marginalized. This should be challenged under Article 14 of the Constitution.”

Some also contrasted ICICI’s move with that of public sector banks, noting that SBI, India’s largest lender, scrapped its minimum balance requirement in 2020.

One disgruntled customer remarked, “ICICI has gone nuts! Why should the average person keep ₹50,000 locked up? Imagine the interest loss!”