ICICI Bank’s Steep Minimum Balance Hike Creates Protests

A prominent civil society group, Bank Bachao Desh Bachao Manch, has launched a fierce protest against ICICI Bank’s recent decision to drastically increase the minimum average balance (MAB) requirement for new savings accounts. In a strongly worded letter to the Finance Ministry, the organization urged immediate intervention, labeling the private lender’s move as “unjust and regressive” and a direct threat to India’s vision of inclusive banking.

Effective August 1, 2025, ICICI Bank raised the MAB for new savings accounts in urban areas from Rs 10,000 to a staggering Rs 50,000—a fivefold increase. For semi-urban areas, the MAB has surged to Rs 25,000, while rural account holders now face a Rs 10,000 minimum, up from Rs 2,000. Failure to maintain these balances incurs hefty penalties, which the forum argues disproportionately burdens small depositors.

“This decision is a slap in the face to financial inclusion,” said Biswaranjan Ray, joint convener of the forum. Co-convener Soumya Datta added, “It alienates low-income customers and undermines the government’s push for accessible banking.” The group has demanded the policy’s immediate reversal, calling for measures to protect depositors and ensure equitable access to banking services.

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In contrast, public sector banks like State Bank of India and Punjab National Bank have eliminated MAB requirements for many accounts, including Jan Dhan accounts, which carry no penalty for low balances. Experts warn that ICICI’s move could push customers toward public banks or digital-only platforms offering more lenient terms.

The Reserve Bank of India (RBI) has yet to comment, but pressure is mounting for regulatory scrutiny. The forum’s campaign has gained traction on social media, with #BankBachao trending on X, as depositors voice frustration over rising banking costs.

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