ICICI Bank Hikes Minimum Balance, Faces Customer Backlash and Rollback

Introduction

ICICI Bank MAB changes made headlines this month after the bank sharply increased the minimum average balance (MAB) for new savings accounts, prompting a wave of criticism from customers. Within days, the move sparked social media outrage and debate over banking accessibility, forcing ICICI to roll back the rates to more affordable levels.

The Sudden Hike

On August 1, 2025, ICICI Bank announced new MAB requirements for new savings accounts:

• ₹50,000 for metro and urban branches (previously ₹10,000)
• ₹25,000 for semi-urban branches (previously ₹5,000)
• ₹10,000 for rural branches (previously ₹5,000)

The steep hike was introduced without a long notice period, catching customers off guard. Many saw the change as exclusionary, arguing that it would disproportionately impact middle-class and lower-income customers.

Public Backlash

The policy change quickly became a trending topic online. Social media was filled with posts criticizing ICICI for prioritizing profit over accessibility. Financial inclusion advocates also raised concerns, saying such high balance requirements discourage people from keeping formal bank accounts.

Some customers even claimed they would close their accounts, while others called for regulatory intervention to ensure essential banking remains affordable for all.

Rollback After Outrage

Facing mounting criticism, ICICI Bank issued a revision just days later. The updated MAB rates are now:

• ₹15,000 for metro and urban branches
• ₹7,500 for semi-urban branches
• ₹2,500 for rural branches

While the rollback was welcomed, it left customers wondering whether such drastic hikes could return in the future.

The Bigger Picture

The ICICI Bank MAB changes episode has reignited the conversation around fair banking practices in India. With rising costs of living, sudden hikes in account requirements can alienate customers who depend on accessible financial services.

Experts say this incident should serve as a reminder for banks to balance profitability with their role in promoting financial inclusion.