ICICI Bank has introduced a new policy under which it has increased the monthly minimum average balance (MAB) requirement for the new savings account holders. As per the announced requirements, the changes are effective as of August 1, 2025.
ICICI (Industrial Credit and Investment Corporation of India) Bank has stated that this action is aimed at attracting higher-income customers. Such an action is a part of the bank’s premiumisation strategy.
Premiumisation Strategy in general terms is a business approach in which the organisations shift their interest towards offering higher value products or services. Such a strategy is considered as the profitability enhancing strategy by targeting premium customers.
As per the revised regulations, the bank has made changes to the MOB in accordance with branch locations. The changes are as follows-
- In Metro and Urban areas, the amount has been increased to INR 50,000 from INR 10,000
- While, in the case of Semi Urban areas, it has been surged to INR 25,000 from INR 5,000
- For the rural areas, the required balance is INR 10,000
Significantly, all these changes have only been introduced for the new customers, not for already existing ones.
Earlier this year, ICICI Bank also made changes to its savings account interest rate. Sources reveal that the organisation reduced its interest rate by 0.25% for the balances up to INR 50 lakh and 3.25% above that.
Is ICICI Bank’s reducing MAB move justified? Know how public reacts
After the new regulations came into effect, the bank is facing much criticism from the public. The general public while taking the matter to social media pushed this idea back. One of the netizens through his ‘X’ formerly known as twitter account has said, “5 times increase in Minimum balance is loot of customers.”
One of the social media users even claimed this act as “Anti-inclusive, Inflation ignoring, Penalty trap, Rural disregard and an idea of coming brand damage.” Continuing his words, he urged the authorities to withdraw the regressive hike.
“Banks should enable savings, not gatekeep them,” said the user.
Following the criticism, people called this “decision to penalize the customer and loot the money in the name of MAB by hiking it 5X.” With these changes made, users are suggesting that;
- New customer additions may gradually decline
- Many customers may close their accounts
- Only high salaried people may hold.
However, as every coin has two sides, similarly, a group of people are even supporting the idea of reducing MAB. People through their words are making it known that “ICICI Bank is not the government bank to have a social objective.”
People continued that “they are free to choose their customer segment and look to boost fee income.”
