ICICI Bank, India’s second-largest private lender, has faced significant public backlash following its decision to increase the minimum average monthly balance (MAMB) requirements for savings accounts, effective August 1, 2025. The revised rules apply to new accounts opened on or after this date, raising the MAMB to ₹50,000 for metro and urban branches (up from ₹10,000), ₹25,000 for semi-urban branches (up from ₹5,000), and ₹10,000 for rural branches (up from ₹2,000).
The steep increase in MAMB has drawn sharp criticism, particularly on social media platforms like X, where customers have expressed frustration over the new requirements. Many argue that maintaining a minimum balance of ₹50,000 in metro areas is challenging, given that the average monthly income in India is around ₹33,000. The penalty for failing to maintain the MAMB is 6% of the shortfall or ₹500, whichever is lower. For example, a shortfall of ₹10,000 in a metro branch would incur a ₹500 penalty, adding financial strain for customers.
Reacting to the update, several users accused the bank of “filtering customers” based on their wealth. While some called the move “elitist”, others urged the Reserve Bank of India (RBI) to intervene. “This is sheer loot of citizens. Take note @RBI, don’t sleep over it. ICICI is going to earn interest for such a big sum at the cost of Public. Shame on @ICICIBank. I was keeping bank account for stock market transactions but now am going to shut down my bank account and will move to my other bank, where it’s nil,” one user wrote.
“This is called public loot. Denying banking services to the poor and marginalised section of people. This needs to be taken up under article 14 of Indian constitution for creating such access controls by @ICICIBank. All these are happening under the @RBI nose,” commented another.
Impact on Customers
The hike is likely to disproportionately affect lower and middle-income groups, particularly in semi-urban and rural areas, where the new MAMB requirements of ₹25,000 and ₹10,000, respectively, pose significant barriers. In contrast, public sector banks like State Bank of India, Canara Bank, Bank of Baroda, and Punjab National Bank have eliminated MAMB penalties since 2020, making ICICI’s move stand out. Customers have the option to switch to Basic Savings Bank Deposit Accounts (BSBDAs), which are exempt from minimum balance rules under RBI guidelines but come with transaction limits and fewer features.
ICICI Bank has also revised its service charges. Customers are limited to three free cash deposit or withdrawal transactions per month, with a cumulative value cap of ₹1 lakh. Beyond this, charges of ₹150 per transaction or ₹3.5 per ₹1,000 (whichever is higher) apply. Third-party cash deposits and withdrawals are capped at ₹25,000 per transaction. Deposits via cash recycler machines during non-working hours (4:30 p.m. to 9:00 a.m.) or on holidays incur a ₹50 fee per transaction if the total exceeds ₹10,000 in a month. ATM transactions at non-ICICI Bank ATMs in metro cities like Mumbai, Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad cost ₹23 per financial transaction and ₹8.5 per non-financial transaction after the first three monthly transactions.
ICICI Bank’s decision to raise the minimum average monthly balance has sparked widespread anger, with customers questioning the affordability and accessibility of its services. The move contrasts with the trend of public sector banks waiving MAMB penalties, potentially pushing customers toward competitors with lower or no minimum balance requirements. For existing customers, the new MAMB requirements do not apply, but new account holders face a higher financial burden, raising concerns about financial inclusion in India’s banking sector.
What is the Minimum Balance Requirement and Why its Necessary?
A minimum balance is the minimum amount of money that a bank requires account holders to maintain in their savings account, typically calculated as an average over a month (Minimum Average Monthly Balance, or MAMB). This requirement ensures that banks can cover operational costs, such as account maintenance, transaction processing, and providing services like ATMs and online banking.
Banks like ICICI impose this to generate revenue through penalties when the balance falls below the threshold (e.g., 6% of the shortfall or ₹500, whichever is lower) and to encourage customers to maintain higher deposits, which banks can use for lending and investments. It’s mandatory to ensure the bank’s financial viability, but high minimum balance requirements, such as ICICI’s new ₹50,000 for metro areas, can exclude lower-income customers, prompting criticism for limiting access to banking services.
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