ICICI Bank revises minimum balance for new savings accounts, reducing urban requirement from ₹50,000 to ₹15,000 after customer criticism.
ICICI Bank in India has partially reversed its recently announced minimum average balance (MAB) policy following widespread customer criticism. The bank had earlier raised the MAB for new savings accounts in urban areas from ₹10,000 to ₹50,000, a move that was seen as a sharp departure from industry norms and triggered strong pushback.
In its revised structure, ICICI Bank has reduced the MAB for urban and metro customers to ₹15,000, while for semi-urban accounts, the requirement has been cut from ₹25,000 to ₹7,500. For rural customers, the threshold remains unchanged at ₹5,000. These revisions apply to new accounts, while existing account holders continue under earlier terms.
Also Read: ICICI Bank to Increase Minimum Balance Requirement from August 1
The penalty for not maintaining the prescribed balance is set at 6% of the shortfall or ₹500, whichever is lower. By lowering the requirement from ₹50,000 to more moderate levels, the bank is aiming to strike a balance between profitability and inclusivity.
Financial experts note that ICICI Bank’s initial move to raise the MAB to ₹50,000 had the potential to price out a significant portion of the customer base in urban areas. The rollback highlights how customer feedback is increasingly shaping retail banking strategies in India. Banks are recognizing that while balance sheet strength is critical, accessibility and inclusivity remain vital to sustaining long-term growth.
This recalibration places ICICI Bank in closer alignment with broader market trends, where lenders are moderating account maintenance thresholds to ensure wider financial participation. The revision also underscores the growing importance of customer responsiveness in a competitive banking environment.
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