ICICI Bank rolls back 5-fold increase in minimum balance requirement
NEW DELHI: After facing massive public outrage over its decision to raise the minimum monthly average balance in savings accounts fivefold, ICICI Bank — the country’s second-largest private-sector lender — has rolled back the hike.
The bank has now set the monthly average balance at Rs 15,000 for metros and urban locations, down from the Rs 50,000 announced earlier. For semi-urban branches, the requirement is Rs 7,500, reduced from ₹25,000, while rural accounts will need a balance of Rs 2,500.
On July 31, ICICI Bank had announced steep hikes in the minimum balance requirements for new (non-salary) savings accounts opened from August 1, raising them to Rs 50,000 from Rs 10,000 in metros, Rs 25,000 from Rs 5,000 in non-metros, and ₹10,000 from ₹2,500 in rural areas. Failure to maintain the required balance would have attracted a penalty of 6% of the shortfall or ₹500, whichever was lower.
The move came even as most public-sector banks have waived such requirements in recent months. Experts had warned that the increase could hurt the bank’s CASA deposits — a key source of low-cost funds — especially since ICICI Bank pays just 2.5% interest on savings balances.
The announcement triggered sharp criticism on social media. One user wrote: “Ninety percent of India survives on ₹25,000 a month. So ICICI Bank wants them to keep two months’ salary as minimum balance?” Another said: “₹50,000 is two-three months’ income for millions. In rural India, ₹10,000 can mean the difference between survival and debt. Banks should promote financial inclusion, not shut the door on those who need it most.”
By contrast, other large private-sector peers such as HDFC Bank, Axis Bank, and Kotak Mahindra Bank require ₹10,000 in metros and much less in semi-urban and rural branches, while major state-run lenders including SBI, Bank of India, Union Bank, and Bank of Baroda have scrapped minimum balance rules altogether.