ICICI Bank’s recent policy adjustments regarding savings accounts have sparked considerable debate. As of August 1, 2025, the bank has significantly raised the minimum average monthly balance requirements for new accounts. Under the new terms, urban customers must maintain a balance of ₹50,000, an increase from the prior ₹10,000. Semi-urban account holders will now need to maintain a ₹25,000 balance, while rural customers will be required to keep ₹10,000. These updated requirements affect only accounts opened after the specified date, so current account holders are not affected. Those who fail to comply with the new stipulations will face a penalty, equivalent to 6% of the shortfall or ₹500, whichever is less.
This move positions ICICI Bank as among the most expensive in the private sector concerning minimum balance requirements. This contrasts with the practices of many public sector banks, which have reduced or eliminated such fees to promote financial inclusion. For comparison, HDFC and Axis Bank have a minimum balance of ₹10,000 for urban customers. The announcement has been met with a significant backlash on social media, with many users expressing their dissatisfaction. Social media users are criticizing the increase, describing it as discriminatory. Critics say these high balance requirements can create difficulties for those with middle and low incomes. The RBI is being urged to intervene. Some customers are contemplating switching to banks with less restrictive policies. One individual posted that, in a country where millions live below the poverty line, ICICI Bank views ₹50,000 as a ‘minimum,’ which is not appropriate. Another said that it is a type of fraud on the customers. One user defended the move by stating that ICICI Bank is working for its shareholders.