ICICI Bank’s minimum balance hike sparks concern across all income groups

August 9 : ICICI Bank has announced a steep hike in the minimum balance requirement for savings accounts, drawing mixed reactions from customers. From August 1, customers in metropolitan or urban areas will need to maintain a minimum balance of ₹50,000, up from ₹10,000. In semi-urban branches, the requirement will rise from ₹5,000 to ₹25,000, while in rural branches, it will jump from ₹2,500 to ₹10,000. Failure to maintain the minimum balance by the end of the month will result in hefty penalties.

The rule on penalties for not maintaining a minimum balance was reinstated by the central government in April 2017 after a gap of nearly five years. The move faced strong criticism nationwide, with opposition parties warning it would severely affect the lower-income and lower-middle-class population. For many, keeping the required balance at the end of each month is already challenging, and penalties would only push them into greater financial strain.

Critics fear that ICICI Bank’s latest decision could impact not just the poor but also the upper class. With the sharp increase in the required minimum balance, even affluent customers may find themselves rethinking their banking choices. The move, seen by some as a way for private banks to maximize profits, has reignited the debate over fairness and accessibility in India’s banking sector.