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Mint
6 hours ago
- Business
- Mint
ICICI Bank REVISES minimum balance requirement after backlash: Here are the new rules
ICICI Bank Minimum Balance: ICICI Bank has revised its minimum balance requirement rule on Thursday, August 13, after it came under the ire of general public following a steep hike in the same. The new ICICI Bank minimum balance requirement is significantly lower than that of the previous notice. Here is everything you need to know about the new ICICI Bank minimum balance requirement. According to the official website of the ICICI Bank, the minimum balance requirement for urban and metro areas is ₹ 15,000, down from ₹ 50,000. For semi-urban areas, ICICI Bank minimum balance in savings account has been revised to ₹ 7,500. For rural areas, the minimum monthly average balance (MAB) ICICI Bank requires is ₹ 2,500. This is even lower than the earlier minimum balance the bank required from rural customers. These new rates are applicable for accounts opened on or after August 1, 2025, ICICI Bank said. For accounts opened before that, the old rules will apply. If customers fail to maintain the revised minimum account balance, they will be charged 6 per cent of the shortfall in the required MAB or ₹ 500, whichever is lower. Earlier this week, ICICI Bank faced severe backlash from the general public after hiking its minimum balance for savings accounts to ₹ 50,000 for urban and metro areas, up 5x from ₹ 10,000. For semi-urban areas, it was hiked to ₹ 25,000, up from ₹ 5,000; for rural areas ICICI Bank hiked the same to ₹ 10,000, up from ₹ 5,000. Since hiking the minimum balance earlier this week, ICICI Bank faced severe criticism from people across all walks of life. Social media influencer Anuj Prajapati called it the 'worst decision'. 'The Worst Decision of ICICI Bank,' said Prajapati. 'Why the hell people put their money in accounts. Urban youth wants to invest those money not to sit dead in Bank Accounts (sic),' he said in a post. 'Better to close the account of ICICI bank and move to other banks with attractive benefit,' said a netizen. Uday Kotak's son Jay Kotak also criticised the move without naming ICICI Bank. 'Every Indian must access our financial sector. 90% of India makes less than ₹ 25,000 a month. A ₹ 50,000 minimum balance implies a sum equal to ~94% of Indians monthly income is to be left with the bank at all times, else a fee!,' he said in a post on X.
Mint
a day ago
- Business
- Mint
‘Worst decision of ICICI Bank': Influencers, netizens react to minimum balance rule
India's second-largest private sector lender, ICICI Bank, increased its minimum balance requirement for all new savings bank accounts effective 1 August 2025. Since its announcement, the institutional lender's decision to increase the minimum balance threshold has sparked mixed emotions among the banking customers. People have taken their concerns to the social media platform X with an overall opinion of how upset they are about the move. A social media user and influencer, Anuj Prajapati, said that this is the 'worst decision' that ICICI Bank has ever taken, highlighting how the urban youth now search to invest their funds rather than having them sitting in a bank account. 'The Worst Decision of ICICI Bank,' said Prajapati. 'Why the hell people put their money in accounts. Urban youth wants to invest those money not to sit dead in Bank Accounts (sic),' he said in the post. Founder of Hercules Advisors and a Sebi-registered investment advisor, Aditya Shah, re-shared Jay Kotak's post on the platform X, and emphasised how '90% of Indians earn less than ₹ 25,000' and questioned how these people will maintain such a high minimum balance. '90% Indians make less than ₹ 25,000. How will they maintain a minimum balance? Basic Savings Account with some level of basic banking service should be absolutely free!' said Shah, focusing on how the lenders can charge MAB for the extra services. 'A ₹ 50,000 minimum balance implies a sum equal to 94% of Indians monthly income is to be left with the bank at all times, else a fee!' said Jay Kotak in his post. Some netizens even tried to deactivate their savings deposit account with ICICI Bank after the minimum balance hike. 'Better to close the account of ICICI bank and move to other banks with attractive benefits,' said a social media user named Deepak Parvat in his post on X. 'Banks talk about their costs. Customers care about results. They want their money fast, they want clarity, and they want a fair return. Your operating expenses aren't their problem. Banks need to match what's already available in the market. If they don't, money will keep flowing elsewhere,' said Rajan Bajaj, the Founder and Executive Director of Slice Bank. With some contrarian views, Sebi-registered investment advisor Ankit Kanodia said that the reality of this minimum balance hike is that 'No one's being unbanked,' as the State Bank of India and other PSU banks have zero-balance account options for customers. 'This is called premiumization,' said Kanodia in his post. ICICI Bank announced its decision to increase the minimum balance requirement (MBR) to ₹ 50,000 per month for new customers opening savings accounts with the institution, effective 1 August 2025. The details of the announcement show that every customer who opens a bank account in ICICI Bank's Metro and Urban branch locations after 1 August 2025 will have to maintain a minimum account balance (MAB) of ₹ 50,000 per month to avoid being penalised for going below the threshold. Mint reported earlier that the minimum balance requirement has been increased from ₹ 10,000 every month. ICICI Bank customers who open their savings bank account at a Semi-Urban branch location after the set date will be subject to maintaining a minimum balance of ₹ 25,000 and ₹ 10,000 at a Rural branch of the private institutional lender, compared to their earlier ₹ 5,000 MAB levels. According to the data collected from the official website, if customers fail to maintain the minimum balance levels specified in their savings bank accounts, the bank will charge them 6% of the shortfall amount as a penalty or up to ₹ 500, whichever is lower. "In case of Family Banking, the customer must collectively maintain 1.5 times program eligibility criteria. If family banking threshold criteria are not met, the non-maintenance charges will be applicable to family members who do not maintain individual MAB," ICICI Bank said in its service charges announcement update. Disclaimer: This article only intends to educate and spread awareness about bank accounts and the minimum balance requirements. Mint does not promote or encourage making investments without seeking professional advice from certified experts.
Hindustan Times
4 days ago
- Business
- Hindustan Times
ICICI Bank slammed for raising minimum account balance for savings accounts to ₹50,000: ‘Blow to middle class'
ICICI Bank is facing flak from a section of the internet for its decision to raise the minimum balance requirement for savings accounts. Customers with savings accounts in metro and urban areas will be expected to maintain a minimum average monthly balance of ₹50,000, up from the earlier ₹10,000. ICICI Bank faces flak from a section of the internet for its new minimum balance requirements.(Abeer Khan/Bloomberg) The minimum average balance requirement for account holders in semi-urban areas now stands at ₹25,000, up from ₹5,000. Meanwhile, the minimum balance for rural areas has been increased from ₹2,500 to ₹10,000. This hike will be applicable to new savings accounts opened on or after August 1, 2025. (Also read: ICICI Bank raises minimum balance for savings accounts from ₹10,000 to 50,000) 'Worst decision' YouTuber Anuj Prajapati called it the 'worst decision' by ICICI Bank, and he wasn't alone in criticising the move. A lot of people vented their frustration on social media, calling it a decision that would further emburden the middle class. 'Even people with ₹1 Lakh salary per month will not have ₹50k monthly average balance because of their EMIs, bills, loans, credit card usage etc. Every sector is just focused on looting the middle class. Poor people are just the walking dead for them and the government,' wrote one X user. 'ICICI Bank just made saving accounts a luxury item,' another said. Shama Mohamed of the Indian National Congress called it 'Another blow to the middle class'. 'Now people will be penalised for not maintaining this huge amount,' she wrote. has reached out to ICICI Bank for a statement. This copy will be updated on receiving a response. A number of people also pointed out that those who had ₹50,000 to spare every month would hardly want their money in a savings account which pays little interest. 'In 2025, urban youth don't want their money to rot in accounts earning 3% interest. They want to invest, grow, and build wealth — not just keep banks rich,' a user said. 'A minimum balance of ₹50,000 in a country where 90% Indians earn less than ₹27,000 a month. For the rich, by the rich, of the rich!' an X user opined. Some people defended ICICI, saying that a private bank is allowed to set its own rules and regulations. The supporters also pointed out that the minimum balance hike would not affect existing customers. Also read: ICICI Bank minimum balance: Check penalty rates for non-compliance
