ICICI Bank’s recent decision to hike the minimum monthly average balance for its savings accounts has drawn significant criticism. Starting August 1, 2025, new account holders in metropolitan and urban areas must maintain a balance of ₹50,000, a substantial increase from the previous ₹10,000. Semi-urban customers will now need ₹25,000, and rural customers ₹10,000. This change affects only accounts opened after the specified date, leaving existing customers unaffected. Failure to comply with the new balance requirements will result in a penalty of 6% of the shortfall or ₹500, whichever is lower.
The move positions ICICI Bank as one of the most expensive private banks in terms of minimum balance requirements. This contrasts with many public sector banks that are easing these restrictions to promote financial inclusion. Competitors like HDFC and Axis Bank maintain a lower minimum balance of ₹10,000 for urban customers. The announcement has triggered widespread negative reactions on social media, with many users expressing their disapproval. Social media users have criticized the increase, describing it as discriminatory. Critics argue that these requirements pose challenges for middle and low-income individuals. Many are calling on the Reserve Bank of India (RBI) to intervene. There are discussions about switching to banks with friendlier policies. One user wrote, “In a country where a large population lives below the poverty line, ICICI considers ₹50,000 a ‘minimum,’ which is not appropriate.” Another user said, “I think the bad days of this largest private sector bank in India has started. It is a type of fraud on customers.” Some users defended the bank’s move and said, “ICICI is working for its shareholders.”