Is ICICI Bank becoming elitist? India’s second-largest private lender faces backlash over new savings account balance norms

ICICI Bank, the country’s second-largest private sector lender, has been facing outrage on social media after it revised its minimum monthly account balance requirements for new savings accounts.

Why are people enraged?

ICICI Bank recently updated its rules and regulations for new savings bank accounts. As per the new rules, savings bank accounts opened after August 1, 2025, will need to maintain a minimum monthly average balance (MMAB) of Rs 50,000, which is five times more than the earlier requirement of Rs 10,000. This limit is applicable for accounts opened at branches in metro and urban locations.

For semi-urban locations, the MMAB limit has been set at Rs 25,000, while for the rural branches, the MMAB requirement will be Rs 10,000.

If the MMAB is not maintained, then the bank will charge 6 per cent of the shortfall in required MAB or Rs 500, whichever is lower.

This significant increase in the MMAB requirement has stumped many, with some users calling it an elitist move and others calling for a switch to other banks.

“The majority of Indians earn below Rs 25,000 monthly. So, ICICI Bank wants them to keep two months' salary as minimum balance in their account. This is sheer loot and thuggery of middle-class money by the bank,” wrote on user on X (formerly Twitter).

“Time to close my account with ICICI bank. I would rather invest my Rs 50,000 than let it rot with ICICI bank,” wrote another.

“Clearly the bank only wants to bank with affluent customers,” wrote a third person.

Even Jay Kotak, who co-heads Kotak811, Kotak Mahindra Bank’s digital banking initiative, weighed in. “Every Indian must access our financial sector. 90 per cent of India make less than Rs 25,000 a month. A Rs 50,000 minimum balance implies a sum equal to 94 per cent of Indians’ monthly income is to be left with the bank at all times, else a fee,” he said.

According to Kotak, the implication is that the physical cost to serve may be high and that digital first is the way. If banks don’t do it, fintechs will, he pointed.

How ICICI Bank’s new account balance rules compare with rivals?

At the country’s largest private lender, HDFC Bank, for a regular savings account, the average monthly balance requirement for metro and urban locations is Rs 10,000, or a fixed deposit of Rs 1 lakh for a minimum 1-year, 1-day period. The same is Rs 5,000 or Rs 50,000 FD for semi-urban branches and a minimum balance of Rs 2,500 or FD of Rs 25,000.

At Kotak Mahindra Bank, the average monthly balance requirement for their everyday savings account is Rs 10,000.

State Bank of India, the country’s largest lender, has no monthly average balance requirement for their savings bank account.

ICICI Bank, then it may seem, is an outlier and perhaps the most expensive in this case among domestic lenders.

Some feel, ICICI Bank may be simply using this move to increase its CASA (current account, savings account) deposits, or perhaps to filter out its new customer base, focusing on more elite clients. The lender itself has not given any reasons so far behind this move to sharply increase the minimum monthly average balance requirement.

A close look shows that the new MAB rules are not applicable for all accounts at ICICI Bank.

What to know

For regular salary accounts, their minimum monthly average balance requirement is zero. Even for a family account of salaried customers, the MAB requirement is nil.

The Basic Savings Bank Deposit Account (BSBSA) under the Pradhan Mantri Jan Dhan Yojana continues to attract zero charges or requirement, whether its minimum monthly balance, or charges for non-maintenance of monthly balance.  

As such, the rules are not applicable to existing account holders for ICICI Bank.