The move by ICICI Bank, one of the most popular banks in the Indian private sector, to drastically raise minimum average balance ( MA B ) on savings account, as of August 1, 2025, has created a hornets nest. The announcement has sparked off a nationwide outcry with customers, financial gurus and social media users speaking out in condemnation of the move as both exclusionary and ill-timed. The new policy puts a heavy toll on new customers of the bank, which has caused some arguments regarding accessibility, inclusiveness in banking, and strategic planning of the bank in the competitive environment.
New savings account holders in metro and urban circles will be required to maintain an average monthly balance of 50,000 rupees, which is a sharp increase of 10,000 rupees as compared to the former minimum amount. In semi-urban regions, it has been raised to 25,000 rupees as compared to 5,000 rupees. Although certain details of the rural areas are not clarified, the bank has ascertained an upward revision of these areas as well. However, the current customers are allowed to retain the previous 10,000 minimum, which is a relief to old customers with accounts. It has also caused the bank to tighten related policies with stricter ATM withdrawal limits and increased charges on transactions adding to the rise in discontent on the part of the people.
The ruling has been met by a conflagration of scorn especially on social network sites such as X where users have raised objections on how the policy will affect the middle class and small savers. It has been contested that the drastic increase makes a large section of the customer base of the bank lose interest, which counters the wider financial inclusion effort in India. Critics warn that the new demands can create a barrier to the opening of accounts by low- and middle-income earners, in effect excluding a group already grappling with surging living expenses, to the banking system. There are even speculations that with the move, ICICI could lose its retail deposit base and dilute its Current Account and Savings Account (CASA) ratio, which is a major indicator of the financial health of the organisation.
ICICI Bank has justified the policy in terms of rising costs of operations and the necessity to ensure service quality. Nevertheless, this reason has not helped curb the backlash much. Social media debates have promoted the change to other options, with several clients demanding to move to state-owned banks such as the State Bank of India (SBI) with lesser minimum balance requirements or to the digital-first banks that service price-sensitive customers with minimum charges. The mood on X is increasingly angry, and hashtags and posts are increasing boycott and regulatory complaints against the practices of the bank.
There have been analyst comments, which suggest that the high-net-worth client focus at ICICI could be a strategic shift to gain higher profitability but also a way that could alienate the rest of the customers. The Indian banking market is very competitive and digital banks, as well as fintech platforms, are very competitive alternatives. In weighing their options, the move by ICICI may result in loss of market share in case the dissatisfaction is to be translated into closing of accounts. The scandal has remained a hot topic of discussion and the actions of the bank in the future are observed carefully. Until then, the issue of the increase in minimum balance is a hot topic, which indicates the underlying issues of affordability and access in the Indian banking world.
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