ICICI Bank Reduces Minimum Balance for New Urban Savings Accounts to ₹15,000

ICICI Bank revises savings account norms after criticism over steep MAB hike.

ICICI Bank, India’s second-largest private sector lender, has announced a significant revision to its minimum average balance (MAB) requirement for new urban savings account holders. The bank has reduced the MAB from the recently announced ₹50,000 to ₹15,000, following strong customer backlash over the steep hike.

Earlier this month, ICICI Bank increased the MAB for new urban accounts from ₹10,000 to ₹50,000 — a move that drew criticism from customers and industry watchers for being too abrupt and potentially exclusionary. While the revised ₹15,000 requirement is a major rollback, it still represents a ₹5,000 increase over the previous threshold for new accounts.

For existing savings accounts in urban areas, the MAB will remain unchanged at ₹10,000. ICICI Bank clarified that if a customer fails to maintain the required balance, a penalty of 6% of the shortfall amount or ₹500, whichever is lower, will be applied.

Banking experts note that while the rollback is a positive step towards easing customer concerns, the higher-than-before requirement may still impact some new account holders. The move reflects a balancing act between meeting operational and profitability goals while addressing public sentiment.

Industry analysts also believe that the episode underscores the growing influence of customer feedback and social media outrage on banking policy changes, as lenders seek to maintain public trust in an increasingly competitive retail banking market.