ICICI Bank Reverses Steep Minimum Balance Hike After Public Outcry, Cuts Metro MAB to ₹15,000

Lucknow, August 14 (TNA) ICICI Bank, India’s second-largest private lender, has rolled back its controversial minimum average balance (MAB) requirement for new savings accounts, slashing the threshold from ₹50,000 to ₹15,000 in metro and urban areas. This significant policy reversal comes just days after the bank announced the fivefold hike, which sparked widespread backlash among customers and financial experts alike.

The initial decision, effective from August 1, 2025, had proposed raising the MAB from ₹10,000 to ₹50,000 for new urban accounts, ₹5,000 to ₹25,000 for semi-urban branches, and ₹2,000 to ₹10,000 in rural locations. Many viewed the steep hike as exclusionary, potentially shutting out millions of low-and middle-income depositors.

Following the strong customer feedback and public criticism on social media and from banking insiders, ICICI Bank swiftly revised its requirements. The new MAB now stands at ₹15,000 for metro and urban customers, ₹7,500 for semi-urban, and ₹2,500 for rural accounts. Importantly, salary accounts, senior citizens above 60, pensioners below 60, students from select institutes, and accounts opened before July 31, 2025, remain exempt from these changes.

The bank emphasised that the revision better reflects customer expectations and preferences, aiming to maintain inclusivity while continuing to manage operational costs. Experts caution, however, that maintaining a balance between profitability and accessibility remains a challenge for private sector banks amidst evolving market conditions.