ICICI Bank has significantly increased the minimum average monthly balance requirements for new savings accounts, effective August 1, 2025, leading to mixed reactions from customers. The revised rules mean that metropolitan and urban account holders will now need to maintain a monthly average balance of ₹50,000, up from ₹10,000. For new semi-urban customers, the minimum balance requirement has increased to ₹25,000 (previously ₹5,000), and for rural accounts, it has risen from ₹5,000 to ₹10,000. These new standards only apply to accounts opened after August 1st, allowing existing customers to remain under the old limits. Those who fail to meet these conditions will be penalized with a fee of 6 percent of the shortfall or ₹500, whichever is less. This move makes ICICI Bank one of the most expensive private banks for regular savings accounts, especially when many major public banks have eliminated penalties for not maintaining minimum balances to promote financial inclusion. Comparatively, HDFC and Axis Bank maintain a minimum balance of ₹10,000 for urban customers.
Social media users have criticized the increase, calling it discriminatory and elitist, and urging the RBI to intervene. Critics argue that such requirements could create barriers for middle and low-income customers, especially when the new minimum amount for urban accounts exceeds the average monthly salary in India. Some users are threatening to close their ICICI accounts in favor of banks with less stringent policies, accusing the bank of prioritizing wealthy customers. One user wrote, “In a country where 23 crore people live below the poverty line, ICICI thinks ₹50,000 is a ‘minimum’ amount, what a masterstroke.” Another user commented, “This is the largest private sector bank in India. I think its bad days have started now. This is a kind of fraud on customers. On the one hand, government banks are abolishing the penalty on minimum balance, while the private sector is increasing it. This is what is called the loss of privatization.” However, one user defended the move, saying, “Why such a strong reaction on ICICI Bank increasing the minimum balance in its savings account? They can choose their customer base and consider increasing fee income. I am sure that average balance analysis has been done to prevent losing customers, they are not government banks with any social objective. They are working for their shareholders.”
