ICICI Bank is under fire online after announcing a sharp hike in the minimum average monthly balance (MAB) requirement for new savings accounts. Customers opening accounts in metro and urban areas from August 1, 2025, will now need to maintain an MAB of ₹50,000 — five times higher than the previous ₹10,000 limit.

For semi-urban branches, the minimum balance has risen from ₹5,000 to ₹25,000, while rural account holders will now need to keep ₹10,000, up from ₹2,500. The change applies only to new accounts, with existing customers unaffected.

Public Outrage on Social Media

The decision has sparked anger among many, who see it as another financial strain on India’s middle class. YouTuber Anuj Prajapati called it the “worst decision” by the bank. Several users on X argued that even people with salaries over ₹1 lakh a month might struggle to keep ₹50,000 idle due to EMIs, bills, and other expenses.

Congress spokesperson Shama Mohamed criticised the move, calling it “another blow to the middle class” and warning that people would now be penalised for not maintaining such a high balance. One user remarked, “ICICI Bank just made savings accounts a luxury item.”

Others pointed out that those with spare funds would likely invest rather than keep money in an account earning around 3% interest. As one post noted, “Urban youth want to grow and invest, not let their money rot in banks.”

Critics also highlighted income inequality, with one user stating, “A minimum balance of ₹50,000 in a country where 90% earn less than ₹27,000 a month — for the rich, by the rich, of the rich.”

Supporters Defend Policy

Some defended ICICI Bank’s move, noting that as a private institution, it is free to set its own terms. Supporters also stressed that the change would not affect existing customers, only those opening new accounts after the policy came into effect.

HT has reached out to ICICI Bank for an official comment.

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