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Business Standard

After ICICI Bank row, HDFC Bank clarifies no change in minimum balance rule

Amid renewed debate over minimum balance requirements in savings accounts — especially after the recent ICICI Bank controversy — HDFC Bank has issued a clarification, stating there has been no change in its Average Monthly Balance (AMB) requirements across account types. The bank said it offers 'multiple variants of Savings Accounts in line with the customers' profile,' with each variant carrying different AMB norms based on the value-added services offered. HDFC Bank also confirmed that all savings account variants are available across rural, semi-urban, urban, and metro branches, depending on the customer's profile. However, in metro areas, new customers are more likely to be offered the Savings Max Account, given its service features and higher AMB threshold. The clarification comes at a time when public attention is focused on bank charges and minimum balance norms, with consumer forums and regulators keeping a close watch on transparency in customer onboarding and account maintenance terms. ICICI Bank, India's second-largest private sector lender, has partially rolled back its controversial move to sharply increase the minimum monthly average balance (MAB) for new savings accounts, following intense criticism from customers. Effective August 1, the bank has reduced the MAB for new accounts in metro and urban branches from the recently announced ₹50,000 to ₹15,000. In semi-urban branches, the requirement has been cut from ₹25,000 to ₹7,500, while rural branches see a drop from ₹10,000 to ₹2,500. 'We had introduced new MAB requirements for new savings accounts from August 1, 2025. Following valuable customer feedback, we have revised these to better reflect their expectations and preferences,' ICICI Bank said in a statement, thanking customers for their trust and input. The bank had faced heavy backlash on social media earlier this week after announcing the steep hikes, with many calling the move anti-consumer and exclusionary. Even after the revision, however, the MAB remains higher than the earlier structure — ₹10,000 for metro/urban, and ₹5,000 for semi-urban and rural branches. MAB is calculated as the simple average of day-end balances over a calendar month, and shortfalls can attract penalties. RBI Governor Sanjay Malhotra has clarified that the central bank leaves it to individual banks to set their MAB levels, with no regulatory cap or floor, making such policy shifts entirely at the discretion of lenders.