Private sector giant ICICI Bank appears to be closing its doors to ordinary customers — at least financially. The bank has sharply increased the minimum average monthly balance (MAMB) requirement for savings accounts in metropolitan and urban areas from ₹10,000 to an unprecedented ₹50,000.
According to an Economic Times report, the new rule applies to all savings accounts opened on or after August 1, 2025. Customers failing to maintain this balance will face penalties. While an ICICI spokesperson did not elaborate on the reasons behind such a steep hike, market analysts believe the move reflects a broader trend: as GDP grows and wealth distribution becomes more uneven, banks and financial institutions are increasingly focusing on wealth management services for affluent clients.
Banks are already competing fiercely with mutual funds, portfolio management companies, private equity firms, and venture capital funds to attract high-value savers.
Basic Savings Accounts Still Cater to the Masses
More than a decade ago, in an effort to balance the pursuit of “mass affluent” customers with the need to include unbanked citizens in the formal financial system, the government directed banks to convert their “no-frills” accounts into Basic Savings Bank Deposit Accounts (BSBDA). These accounts, which include those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), have no minimum balance requirement.
As per the Reserve Bank of India’s guidelines — detailed in its July 1, 2015 “Customer Service in Banks” master circular — banks are free to set service charges for non-BSBDA accounts based on board-approved policies, provided fees remain reasonable and proportionate to the cost of delivering those services.
With ICICI’s latest move, the gap between premium banking customers and regular account holders may widen, potentially reshaping how banks approach retail customers in India’s evolving financial landscape.