ICICI Bank Slashes Minimum Balance Requirement After Massive Backlash—But Is ₹15,000 Still Too High?

ICICI Bank has made headlines across India after reversing its recent decision to hike the minimum average balance requirement for new customers in urban areas. The move came after a public outcry, but many customers still question whether the new limit is fair or realistic.

What Changed and Why?

Initially, the bank announced that new customers would need to maintain a minimum average balance of ₹25,000—a steep rise from the previous threshold. This announcement triggered widespread criticism from account holders and the general public, many of whom saw the jump as excessive, especially in today’s uncertain economic times.

Facing the backlash, ICICI Bank softened its stance. The minimum average balance for new customers in urban areas has now been reduced—partially—from ₹25,000 to ₹15,000.

How Does This Compare To Before?

Urban areas: New customers must now keep ₹15,000 in their account, down from the initially proposed ₹25,000.
Semi-urban & Rural: For these regions, the requirement is set at ₹7,500.
Existing customers in semi-urban/rural areas can continue with the previous limit of ₹5,000.
Notably, this means urban account holders are still being asked to maintain a balance that’s ₹10,000 higher than before the controversy.

How Does ICICI Stack Up Against Public Banks?

Public sector banks like State Bank of India (SBI), Canara Bank, and Punjab National Bank have already removed the minimum balance requirement for regular savings accounts, opting for more customer-friendly policies. Some experts predict that ICICI’s strict policies could prompt some customers to migrate to these state-run banks instead.

Hidden Costs and Changing Preferences

While ICICI’s cutback is a step in the right direction, it’s worth noting that SBI plans to increase IMPS transaction charges for transfers above ₹25,000 from August 15—potentially adding a new layer of costs for digital customers.

Bottom Line: Is ₹15,000 Still Too High?

ICICI Bank’s move is a clear response to public frustration, but the revised minimum balance of ₹15,000 for urban customers still raises questions:

Will ordinary citizens be comfortable locking up ₹15,000 in their accounts?
Could high thresholds push people back to state-owned banks?
Is this new requirement in line with modern, inclusive banking?

Bank customers and industry observers remain divided. What do you think? Is ₹15,000 a reasonable minimum average balance, or should ICICI Bank reconsider again? Share your views in the comments