Bank revises urban MAB from ₹50,000 to ₹15,000; semi-urban rates also reduced after widespread criticism.
ICICI Bank’s Decision Sparks Relief Among Customers
ICICI Bank has announced a partial rollback of its Minimum Average Balance (MAB) requirements after facing intense criticism from customers. The change comes just days after the bank increased the MAB for new savings accounts in urban areas from ₹10,000 to ₹50,000.
The new rule reduces the urban MAB to ₹15,000 — still ₹5,000 higher than the earlier ₹10,000 threshold, but significantly lower than the controversial ₹50,000 figure.
Key Changes in the MAB Structure
- Urban areas: MAB reduced from ₹50,000 to ₹15,000 for new customers.
- Semi-urban areas: MAB lowered from ₹25,000 to ₹7,500.
- Rural & semi-urban (existing customers): No change; MAB remains at ₹5,000.
Background: The Controversial Hike
On Saturday, ICICI Bank announced the steep hike to ₹50,000 for urban customers, a move that sparked outrage on social media. Many users compared it unfavourably to other banks that have either reduced or completely removed their minimum balance requirements.
For example:
- State Bank of India (SBI) — Scrapped the minimum balance rule entirely in 2020.
- Most private and public sector banks — Maintain MABs between ₹2,000 and ₹10,000.
Why the Rollback Matters
This reversal shows the influence of customer feedback in shaping banking policies. While the new rates are still higher than before, they offer relief compared to the steep hike earlier announced.
The change also highlights the competitive nature of the Indian banking sector, where customer satisfaction is increasingly linked to flexible account terms
With this rollback, ICICI Bank aims to strike a balance between maintaining profitability and keeping its customers satisfied — a reminder that in today’s competitive banking environment, public sentiment can be as powerful as policy.
