ICICI Bank Cuts Minimum Balance To ₹15,000 After Backlash Over ₹50,000 Rule

ICICI Bank has announced a major change to its savings account policy, lowering the minimum monthly average balance (MAB) for new accounts in metro and urban areas from ₹50,000 to ₹15,000. The revised rule came into effect on August 1, 2025, following strong feedback from customers.

Table of Contents

The ₹50,000 Minimum Balance Rule and When It Started

Earlier this month, ICICI Bank introduced a steep increase in the MAB for new savings accounts. Under that policy:

Metro and urban locations required ₹50,000 MAB
Semi-urban locations required ₹25,000 MAB
Rural locations required ₹10,000 MAB

This was a sharp jump from previous requirements and one of the highest among Indian banks. Public sector banks like SBI have no minimum balance requirement, and most private banks keep it between ₹2,000 and ₹10,000.

Latest News – Puch AI Makes $50B Unsolicited Offer to Acquire Perplexity and Google Chrome

Why It Sparked Controversy

The ₹50,000 rule quickly became a trending topic online. Many customers said the requirement was unrealistic for the majority of account holders, especially in a country where most people earn under ₹30,000 per month.

Social media users accused ICICI Bank of catering only to wealthy clients. Some called it “elitist banking” and demanded that the Reserve Bank of India step in. Several account holders even threatened to close their accounts and move to banks with lower requirements.

Also, See: Perplexity Offers $34.5 Billion to Buy Google Chrome Browser

Bank Responds to Customer Feedback

Facing public criticism and negative coverage in the media, ICICI Bank decided to revise the rule. The updated MAB requirement is now:

Metro and urban locations: ₹15,000
Semi-urban locations: ₹25,000
Rural locations: ₹10,000

The bank said the change was made after listening to customer concerns and studying the impact of the higher balance rule.

Why This Matters

The decision to lower the MAB is expected to make ICICI Bank savings accounts more accessible to a wider group of customers in urban areas. It may also help the bank improve customer trust after the recent controversy.

For account holders, this means less pressure to maintain large sums in their savings accounts, giving them more flexibility to use their money for other needs.