'Worst Decision Of ICICI Bank': Influencers, Netizens React To Minimum Balance Rule

(MENAFN- Live Mint) India's second-largest private sector lender, ICICI Bank, increased its minimum balance requirement for all new savings bank accounts effective 1 August 2025.

Since its announcement, the institutional lender's decision to increase the minimum balance threshold has sparked mixed emotions among the banking customers. People have taken their concerns to the social media platform X with an overall opinion of how upset they are about the move.

Also Read | How much balance do you need to maintain in savings accounts? Bank-wise list What do netizens & influencers say?

A social media user and influencer, Anuj Prajapati, said that this is the 'worst decision' that ICICI Bank has ever taken, highlighting how the urban youth now search to invest their funds rather than having them sitting in a bank account.

“The Worst Decision of ICICI Bank,” said Prajapati.“Why the hell people put their money in accounts. Urban youth wants to invest those money not to sit dead in Bank Accounts,” he said in the post.

Founder of Hercules Advisors and a Sebi-registered investment advisor, Aditya Shah, re-shared Jay Kotak's post on the platform X, and emphasised how '90% of Indians earn less than ₹25,000' and questioned how these people will maintain such a high minimum balance.

Also Read | Can banks decide minimum balance requirement for savings accounts?

“90% Indians make less than ₹25,000. How will they maintain a minimum balance? Basic Savings Account with some level of basic banking service should be absolutely free!” said Shah, focusing on how the lenders can charge MAB for the extra services.

“A ₹50,000 minimum balance implies a sum equal to ~94% of Indians monthly income is to be left with the bank at all times, else a fee!” said Jay Kotak in his post.

Some netizens even tried to deactivate their savings deposit account with ICICI Bank after the minimum balance hike.

“Better to close account of ICICI bank and move to other banks with attractive benefits,” said a social media user named Deepak Parvat in his post on X.

Also Read | ICICI Bank hikes minimum balance to ₹50,000 on savings account

“Banks talk about their costs. Customers care about results. They want their money fast, they want clarity, and they want a fair return. Your operating expenses aren't their problem. Banks need to match what's already available in the market. If they don't, money will keep flowing elsewhere,” said Ranjan Bajaj, the founder of Slice Bank.

With some contrarian views, Sebi-registered investment advisor Ankit Kanodia said that the reality of this minimum balance hike is that“No one's being unbanked,” as the State Bank of India and other PSU banks have zero-balance account options for customers.

“This is called premiumization,” said Kanodia in his post.

How much did ICICI Bank hike minimum balance?

ICICI Bank announced its decision to increase the minimum balance requirement (MBR) to ₹50,000 per month for the new customers who are opening their savings accounts with the institution, effective from 1 August 2025.

The details of the announcement shows that every customer who will be opening a bank account in ICICI Bank's Metro and Urban branch locations after 1 August 2025, will have to maintain a minimum account balance (MAB) of ₹50,000 per month in order to avoid being penalised for going below the threshold. Mint reported earlier that the minimum balance requirement has been increased from their previous levels of ₹10,000 every month.

Also Read | How is MAB calculated? What could be your penalty if you don't maintain MAB?

ICICI Bank customers who will be opening their savings bank account at a Semi-Urban branch location after the set date will be subject to maintaining a minimum balance of ₹25,000, and ₹10,000 at a Rural branch of the private institutional lender, compared to their earlier ₹5,000 MAB levels.

In case, a customer fails to maintain the minimum balance levels specified in their savings bank accounts, then the bank will be charging them a 6% of the shortfall amount as a penalty or up to ₹500, whichever is lower, according to the data collected from the official website.

"In case of Family Banking, the customer must collectively maintain 1.5 times program eligibility criteria. If family banking threshold criteria are not met, the non-maintenance charges will be applicable to family members who do not maintain individual MAB," ICICI Bank said in its service charges announcement update.

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Disclaimer: This article only intends to educate and spread awareness about bank accounts and the minimum balance requirements. Mint does not promote or encourage making investments without seeking professional advice from certified experts.

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