Relief for Customers: ICICI Bank Slashes Minimum Balance to ₹15K
Policy Reversal
ICICI Bank has reduced the high minimum average balance (MAB)
requirement for new savings accounts from ₹50,000 to ₹15,000.
Effective Date and
Scope
The revised rule applies only to accounts opened after August 1, 2025,
and does not affect existing customers.
Cause for Change
The initial steep hike sparked severe public criticism and social media
backlash, prompting ICICI to reconsider and lower the threshold.
Target Audience
The rollback particularly eases the burden on urban and metro new customers,
who had faced the steepest increase.
Revised Limits by Segment
While the headline focus is on urban accounts dropping to ₹15,000, comparable
reductions occurred for semi-urban and rural new accounts as well (details in
broader reports).
Bank’s Responsiveness
ICICI’s rollback demonstrates its willingness to respond to customer
sentiment and public feedback.
Regulatory Position
The RBI Governor clarified that setting minimum balance norms is fully
within a bank’s discretion, not mandated by the Reserve Bank.
Criticism From Financial Experts
Influential voices like Jay Kotak condemned the original ₹50,000 rule,
arguing it overlooked the economic realities of 90% of Indians.
Inclusivity
Implications
The rollback is seen as a step toward preserving financial inclusion,
making banking more accessible to a broader population.
Industry-Wide
Impact
The incident could prompt other banks to reconsider their own
policies—especially since many already maintain lower thresholds or no minimum
balance requirements.
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