ICICI Bank raises MAB requirements, sparks debate on accessibility
Starting August 1, 2025, ICICI Bank will require new savings account holders to keep a higher minimum monthly average balance: ₹50,000 in metro and urban areas, ₹25,000 in semi-urban spots, and ₹10,000 in rural locations.
The move is meant to attract high-balance customers but has sparked criticism for making banking less accessible for those with lower incomes.
Pros and cons of the new rule
ICICI says the update helps cut costs tied to low-balance accounts and lets them focus on better service for bigger depositors.
However, many feel these higher thresholds could shut out potential customers who can't afford them.
For now, other banks—especially government-backed ones—aren't expected to follow suit since they generally keep requirements lower to support financial inclusion.
Existing account holders aren't affected by this change.