Civil society forum slams ICICI bank over savings account minimum balance hike

Bank Bachao Desh Bachao Manch has urged the Finance Ministry to intervene in ICICI Bank’s move to hike the minimum average balance for new savings accounts to ₹50,000, calling it “unjust and regressive” and a blow to inclusive banking.

Kolkata: A civil society organisation advocating banking stakeholders’ interests has written to the Finance Ministry, requesting its intervention into ICICI Bank’s decision to raise the minimum average balance (MAB) requirement for new savings accounts, and said such a move is detrimental to the government’s vision of inclusive banking and growth.

In a letter to the finance secretary, 'Bank Bachao Desh Bachao Manch' termed the private lender's decision as "unjust and regressive".

The bank has raised the minimum balance requirement for new savings accounts opened on or after August 1 by five times to Rs 50,000.

The minimum monthly average balance (MAB) for savings bank accounts till July 31, 2025 for ICICI Bank customers was Rs 10,000.

Similarly, MAB for semi-urban locations and rural locations have been increased five times to Rs 25,000 and Rs 10,000, respectively, according to information available on the ICICI Bank website.

“This retrograde decision undermines the principle of inclusive banking,” the forum’s joint conveners, Biswaranjan Ray and Soumya Datta, claimed.

The civil society organisation called for the immediate withdrawal of the decision, and appealed to the government to protect depositors' interests and ensure broader financial inclusion.

Traditionally, public sector banks have lower balance requirements compared to private lenders with the requirement waived for Jan Dhan accounts.

Several public sector banks have done away with the requirement, and customers who fail to maintain the minimum prescribed balance do not need to pay a penalty.