Civil society organisation ‘Financial institution Bachao Desh Bachao Manch’, expressing their sturdy opposition to ICICI Financial institution’s resolution to extend the minimal common steadiness (MAB) requirement for brand spanking new financial savings accounts, has written to the Finance Ministry. Of their communication with the Finance Ministry, they argued that this transfer contradicts the federal government’s targets of fostering inclusive banking and financial development.
The organisation described ICICI Financial institution’s resolution as “unjust and regressive”. Efficient from August 1, 2025, ICICI Financial institution’s new coverage requires clients in metro and concrete areas to keep up a minimal steadiness of Rs 50,000, a big rise from the earlier Rs 10,000 normal. For semi-urban and rural areas, the necessities have been raised to Rs 25,000 and Rs 10,000, respectively.
Joint conveners of the organisation Biswaranjan Ray and Soumya Datta criticised the brand new coverage, stating, “This retrograde resolution undermines the precept of inclusive banking.” The organisation has referred to as for the fast reversal of this resolution, urging the federal government to safeguard depositors’ pursuits and promote wider monetary inclusion.
Traditionally, public sector banks have maintained decrease steadiness necessities, with some waiving them completely for Jan Dhan accounts. Many of those banks, in distinction to ICICI, don’t penalise clients for failing to keep up the minimal steadiness, reflecting their dedication to inclusivity.
Jay Kotak, son of veteran banker Uday Kotak, has additionally voiced his issues in regards to the implications of such a coverage on India’s center class. He famous that 90 per cent of Indians earn lower than Rs 25,000 a month, highlighting {that a} Rs 50,000 minimal steadiness would necessitate clients to lock away practically all their month-to-month earnings with the financial institution, or face penalties. “Each Indian should entry our monetary sector,” Kotak emphasised, mentioning the challenges this presents to monetary accessibility.
Kotak additional advocated for the shift in the direction of digital banking options, stating, “For banks, the bodily value to serve is excessive, which is why digital-first banking is the long run.” Such platforms may supply extra sensible and cost-effective providers to low- and middle-income clients.
The steep MAB improve by ICICI Financial institution now positions it as having the very best minimal steadiness requirement amongst Indian banks. Compared, main opponents like State Financial institution of India and HDFC Financial institution implement considerably decrease thresholds, sustaining their deal with value administration and buyer inclusivity.
ICICI Financial institution’s resolution marks a pointy departure from business tendencies the place a number of banks have decreased operational prices by reducing deposit rates of interest. Earlier this 12 months, ICICI Financial institution minimize its financial savings account rates of interest, echoing comparable strikes by HDFC and Axis Banks, amidst RBI’s charge reductions.
