A group called ‘Bank Bachao Desh Bachao Manch’, which helps to protect the rights of regular bank users, has written a letter to the Finance Ministry. They’re upset with ICICI Bank, a private bank, for raising the minimum average balance (MAB) that customers must keep in their new savings accounts.
ICICI Bank has increased the monthly average balance (MAB) requirements for new savings account holders, starting from August 1, 2025.
- In Metro or Big Cities new customers must maintain a monthly average balance of ₹50,000.
- In Semi-Urban Areas new customers must maintain a monthly average balance of ₹25,000.
- In Rural Areas new customers must maintain a monthly average balance of ₹10,000.
The group thinks this is unfair, especially for ordinary people who may not have a lot of money.
That’s why they complained to the government, asking it to look into the matter and protect bank customers.
The civil society group says this move is unfair and goes against the goal of making banking easier and more accessible for everyone (called inclusive banking). Its make harder for ordinary people, especially in rural and small towns, to open and maintain bank accounts. They want the government to step in and stop ICICI Bank from making these changes. The group thinks this is unfair for the people who may not have a lot of money.
This step of ICICI Bank could push people away from the formal banking system as in Public sector banks (government-owned banks) usually have lower balance requirements. For example, people with Jan Dhan accounts (basic bank accounts meant for financial inclusion) don’t need to keep any minimum balance. Also, many government banks don’t charge penalties if the balance falls below the required amount.
Also Read: ICICI Bank Hikes Minimum Balance to ₹50,000 for New Customers; Existing Customers Unaffected