ICICI Bank’s Rs 50,000 minimum balance rule leads to anger on social media

The revised rules mean that metropolitan and urban account holders will now have to maintain a monthly average balance of Rs 50,000 instead of Rs 10,000. For new semi-urban customers, the minimum balance limit has increased to Rs 25,000 (earlier Rs 5,000) and for rural accounts it has increased from Rs 5,000 to Rs 10,000.

New Delhi: ICICI Bank has drastically increased its minimum average monthly balance limit for new savings accounts from August 1, 2025, leading to mixed reactions among customers. The revised rules mean that metropolitan and urban account holders will now have to maintain a monthly average balance of Rs 50,000 instead of Rs 10,000. For new semi-urban customers, the minimum balance limit has increased to Rs 25,000 (earlier Rs 5,000) and for rural accounts it has increased from Rs 5,000 to Rs 10,000.

The new norms apply only to accounts opened after August 1, leaving existing customers within the old limit. Those who fail to meet these conditions will have to pay a penalty of 6 per cent of the outstanding amount or Rs 500 - whichever is lower.

The move puts ICICI Bank among the most expensive private banks for regular savings accounts, especially when several major public sector banks have eliminated minimum balance penalties to promote financial inclusion. In comparison, HDFC and Axis Bank keep the minimum balance requirement at Rs 10,000 for urban customers.

Bank's new rule sparks anger on social media

Many have criticised the hike as discriminatory, with social media users calling it elitist and urging the RBI to intervene. Critics argue that such requirements could create barriers for middle- and low-income customers, especially when the new minimum amount for urban accounts is higher than the average monthly salary in India. Some users are threatening to close their ICICI accounts in favour of banks with less stringent policies and accusing the bank of favouring wealthy customers.

One user wrote, "In a country where 23 crore people live below the poverty line, ICICI thinks a 'minimum' amount of Rs 50,000 is a masterstroke."

Objection raised against the new minimum balance rule

Another user wrote, "This is India's largest private sector bank. I think its bad days have started now. This is a kind of fraud with the customers. On one hand, government banks are eliminating the penalty on minimum balance, while the private sector is increasing it. Call it the loss of privatization."

However, a user defended the move, saying, "Why such a sharp reaction to ICICI Bank increasing the minimum balance in its savings account? They can choose their customer segment and consider increasing fee income. I am sure the average balance must have been analyzed to avoid losing customers, they are not a government bank with any social purpose. They are working for their shareholders (through this move)."