Mumbai: India’s second-largest private bank, ICICI Bank, recently changed its rules for savings accounts. These new rules affect the minimum average balance customers must keep in their accounts.
Starting
August 1, new customers opening accounts in metro and urban areas must maintain an average balance of Rs 50,000 every month. If they don’t, they will have to pay a penalty.
For existing customers, the earlier rule of keeping Rs 10,000 still applies.
This change has led to strong criticism from many, especially because it impacts people with lower incomes.
Jay Kotak Criticizes ICICI Bank’s Policy
Jay Kotak, the son of well-known banker Uday Kotak and an executive at Kotak Mahindra Bank, spoke out against this rule on social media platform X (formerly Twitter).
He said the new rule is unfair for middle-class people who earn Rs 25,000 or less per month. For them, keeping Rs 50,000 in a bank account is not possible and would force them to lock away most of their income just to avoid penalties.
Jay Kotak posted:
“Every Indian should have access to banking services. 90 percent of Indians earn less than Rs 25,000 a month. Asking for Rs 50,000 minimum balance means 94 percent of them must deposit nearly all their income!”
Every Indian must access our financial sector. 90 percent of India makes less than Rs 25,000 a month. A Rs 50,000 minimum balance implies a sum equal to ~94 percent of Indians monthly income is to be left with the bank at all times, else a fee!
Implication: physical cost to serve may be high.… pic.twitter.com/x2lzrzgBD7— Jay Kotak (@jay_kotakone) August 9, 2025
Digital Banking Is the Future, Says Jay Kotak
Jay Kotak also spoke about the need for digital banking and fintech platforms, saying they are better suited for low and middle-income customers.
He explained that physical banking is expensive for banks, while digital platforms are cheaper and more accessible. According to him, digital banking can help offer better services without such high balance requirements.
Details of the New Rules by ICICI Bank
Here’s a breakdown of the new minimum balance rules starting August 1:
- Metro/Urban areas (new customers): Rs 50,000
- Semi-urban areas (new customers): Rs 25,000
- Rural areas (new customers): Rs 10,000
Old customers: Remain at Rs 10,000 (urban), Rs 5,000 (semi-urban and rural)
What Happens If You Don’t Maintain the Balance?
If customers fail to keep the minimum balance, they will be charged a penalty of either 6 percent of the shortfall or Rs 500, whichever is lower.
Also, the bank will now allow only three free cash deposits per month. After that, customers will be charged Rs 150 per deposit. This means depositing cash is now more expensive too.
Public and Experts React Strongly
The new rules have faced heavy criticism on social media. Many users are calling ICICI’s policy unfair and say the bank is now focusing only on wealthy customers.
Financial experts have also raised concerns, warning that such rules can exclude lower-income Indians from formal banking and financial services.
