ICICI Bank has revised its minimum account balance requirements for various customer segments. For urban and metro customers, the minimum balance is now set at ₹15,000. For new semi-urban and rural customers, the earlier requirement of ₹25,000 and ₹10,000 has been reduced to ₹7,500 and ₹2,500, respectively.
These changes follow customer and industry backlash after the bank recently increased its minimum average monthly balance requirement from ₹10,000 to ₹50,000, aiming to attract premium customers.
The new rules will not apply to salary accounts, senior citizens and pensioners above 60 years, basic savings bank deposit accounts, Jan Dhan accounts, or accounts for individuals with special needs. Pensioners below 60 years and students from 1,200 select institutions will also be exempt from maintaining any minimum balance. Accounts falling short of the requirement will face a penalty of 6% of the shortfall or ₹500, whichever is lower.
The bank said the latest changes aim to “better reflect customer expectations and preferences.” The earlier decision to raise the minimum balance had faced criticism for being discriminatory. Jay Kotak, son of another private sector bank’s promoter Uday Kotak, pointed out that 90% of Indians earn less than ₹25,000 a month.
The Reserve Bank of India has stayed away from the issue. Governor Sanjay Malhotra said at an event that it does not fall under the RBI’s domain, adding that banks have the freedom to decide their own minimum balance criteria.
This development comes as more public sector banks are removing such requirements. State Bank of India eliminated its minimum balance mandate in 2020, making all regular savings accounts zero-balance. In recent months, Canara Bank, Bank of Baroda, Indian Bank, Punjab National Bank, and Bank of India have also scrapped these rules, citing customer convenience and financial inclusion.