Hyderabad: ICICI Bank, the country’s second-largest private sector lender, has rolled back its recent hike in the minimum average balance (MAB) requirement for new savings accounts after widespread customer backlash. The bank announced substantial reductions in the revised charges, replacing the controversial rates introduced earlier this month.
Under the new rules, new customers in urban areas will now need to maintain an MAB of ₹15,000, down from the recently increased ₹50,000. Earlier, the bank had raised the requirement from ₹10,000 to ₹50,000, triggering strong objections from account holders. While the revised figure offers relief, it remains ₹5,000 higher than the previous norm.
Relief for semi-urban customers
In semi-urban areas, the MAB for new savings accounts has been reduced from ₹25,000 to ₹7,500. The MAB requirement for existing customers in rural and semi-urban areas remains unchanged at ₹5,000.
The move comes in contrast to the State Bank of India, which abolished the minimum balance requirement for savings accounts in 2020. Most other banks keep the MAB in the ₹2,000–₹10,000 range. ICICI Bank’s earlier sharp hike had drawn significant criticism, prompting the management to revise the policy.