ICICI Bank Raises Minimum Balance Requirement to Rs 50,000

ICICI Bank has increased the minimum balance requirement for new accounts, effective August 1, 2025.

ICICI Bank Minimum Balance Hike: ICICI Bank has increased the minimum balance requirement for new savings accounts. In metro cities, new account holders will now be required to maintain a minimum balance of ₹50,000 per month. This limit is set at ₹25,000 in semi-urban areas and ₹10,000 in rural areas. Previously, the minimum balance was ₹2,500. This new rule came into effect on 1 August 2025. According to the bank, maintaining ₹50,000 in metro cities, ₹25,000 in semi-urban areas, and ₹10,000 in rural areas will be mandatory. This new rule applies only to those opening new accounts. Existing account holders will continue under the old MAB terms. Customers who fail to meet the new MAB requirement will be charged a penalty of at least ₹500 or 6% of the shortfall, whichever is lower.

Bank's Objective and Impact

This move by the bank reflects a strategic shift towards a premium customer segment. However, it may make accessing banking services more difficult for low-income and rural customers.

Public and Expert Reaction

The decision has been met with public discontent. Many believe this change will make banking services more expensive for the common man. Financial experts suggest this could be part of a strategy to attract wealthier clients, potentially alienating middle and lower-income customers.

Bank's Response and Further Information

Currently, the bank has implemented this rule only for new accounts, but experts believe it may be extended to existing accounts in the future. Meanwhile, the bank has clarified that this rule will not apply to existing customers, and their current terms will remain unchanged. In the coming weeks, we will observe whether other private banks follow suit.