© The Indian Express Pvt Ltd
Tags:
Journalism of Courage
After facing backlash from customers, ICICI Bank has rolled back part of its earlier decision to hike the minimum average balance (MAB) requirement for new savings account holders in urban areas. The MAB has now been reduced from Rs 50,000 to Rs 15,000.
This change follows widespread criticism after the bank — India’s second-largest — sharply increased the MAB for new urban customers from Rs 10,000 to Rs 50,000 just days ago. While the revised amount of Rs 15,000 is lower than the earlier hike, it is still Rs 5,000 more than what it was previously. For old accounts, MAB will remain at Rs 10,000.
The bank has also lowered the MAB for semi-urban customers, cutting it from Rs 25,000 to Rs 7,500. For rural and semi-urban customers with older accounts, the MAB remains unchanged at Rs 5,000. In rural areas, the MAB for new accounts has been reduced to Rs 2,500, which is actually lower than the previous requirement. For pensioners (below 60 years) and students of 1200 select institutes, MAB will be nil.
These new rules apply only to accounts opened on or after August 1, 2025. Existing account holders will continue to follow the earlier norms.
If a customer fails to maintain the required MAB, ICICI Bank will charge a penalty of 6 per cent of the shortfall or Rs 500 — whichever is lower, according to the bank.
