"Elitist": ICICI Bank's New Minimum Balance Rule Sparks Strong Reactions On Internet

After ICICI Bank announced a sharp hike in the minimum average balance (MAB) requirement for its savings accounts, the move sparked strong criticism online, with many users condemning the change. According to the official notice, the hike impacts customers across metro, urban, semi-urban and rural locations. Under the revised structure, customers in metro and urban areas will need to maintain an average balance of Rs 50,000 - a substantial jump from the previous Rs 10,000 requirement. New customers in semi-urban areas will be required to maintain a minimum average balance of Rs 25,000, up from earlier Rs 5,000. In rural areas, customers will need to maintain Rs 10,000, up from the previous Rs 5,000.

The higher minimum average monthly balance will apply only to new savings bank accounts opened after August 1, 2025. Customers who do not maintain the minimum average balance will be levied a penalty, as per the bank's updated terms. This is set at 6% of the shortfall or Rs 500, whichever is lower.

Reacting to the update, several users accused the bank of "filtering customers" based on their wealth. While some called the move "elitist", others urged the Reserve Bank of India (RBI) to intervene.

"This is sheer loot of citizens. Take note @RBI, don't sleep over it. ICICI is going to earn interest for such a big sum at the cost of Public. Shame on @ICICIBank. I was keepin bank account for stock market transactions but now am going to shut down my bank account and will move to my other bank, where it's nil," one user wrote.

"This is called public loot. Denying banking services to the poor and marginalised section of people. This needs to be taken up under article 14 of Indian constitution for creating such access controls by @ICICIBank. All these are happening under the @RBI nose," commented another.

"This is the largest private sector bank in India. I think its bad times have started now. This is a kind of cheating with the customers. On one hand, the government banks are eliminating the minimum balance penalty while the private sector is increasing it. This is called the disadvantage of privatisation. What you think about it," said a third user.

Also Read | ICICI Bank Raises Minimum Balance From Rs 10,000 To Rs 50,000 For New Customers

"If this is true, my family members will prefer to close icici bank accounts. Non sense decision as most of the customers will turn away from banking," expressed one user.

"ICICI has gone nuts! These charges are beyond ridiculous! Why would the avg person want 50k permanently stuck? Imagine the intrest loss!" wrote another.

NDTV has reached out to ICICI Bank, and a response is awaited. 

Notably, banks impose minimum balance requirements to cover their day-to-day operational expenses and investments, and customers who fall below the specified balance are subject to penalty fees. The bank has advised account holders to check their balances and ensure compliance to avoid charges.