What Changed For New Accounts (Effective August 1, 2025)
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Metro & Urban branches: Minimum Average Balance (MAB) jumps from ₹10,000 to ₹50,000 — five times higher. The Times of India+1The Economic TimesIndia Today
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Semi-Urban branches: Raised to ₹25,000 (from ₹5,000). India Todaywww.ndtv.comThe News Minute
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Rural branches: Set at ₹10,000 (increased from ₹2,500 or ₹5,000). India Todaywww.ndtv.comThe News Minute
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Existing account holders are unaffected; the changes apply only to accounts opened after August 1, 2025. The Times of IndiaRedditThe News Minute
Penalties & Added Rules
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If the MAB requirement isn’t met, the penalty is 6% of the shortfall or ₹500, whichever is lower. The News MinuteIndia Today
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Additional updates include new charges on ATM usage, cash deposits, IMPS, and other services—effective since July 1, 2025. The Economic Times
Public Reaction & Broader Impacts
Backlash:
The move has triggered widespread criticism:
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Many see it as discriminatory, particularly toward the middle and lower-income segments.
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Social media users are calling it elitist and are urging regulatory intervention. mintNavbharat TimesHindustan Times
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Critics argue that imposing such high balance requirements is a step backward for financial inclusion, especially amid banks lowering or waiving MAB rules. Navbharat Timesmint
Support:
Some customers and analysts argue that:
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Private banks like ICICI are free to determine their own target customer segments—often premium or affluent. mintReddit
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Many note that the hike doesn’t impact existing account holders. RedditThe Times of India
Summary Table
| Category | Previous MAB | New MAB (From Aug 1) |
|---|---|---|
| Metro / Urban | ₹10,000 | ₹50,000 |
| Semi-Urban | ₹5,000 | ₹25,000 |
| Rural | ₹2,500–₹5,000 | ₹10,000 |
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Penalty for shortfall: 6% of shortfall or up to ₹500.
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Applies only to new accounts opened after August 1, 2025.
What You Can Do
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Existing customers: No change—your current account terms remain intact.
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New applicants: Consider:
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Maintaining the required MAB to avoid penalties.
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Using a cash-sweep or FD-linked account (like a sweep-in facility) to manage balances smartly. The News Minute
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Exploring alternatives—basic savings accounts under RBI guidelines (like Jan Dhan accounts) with no MAB, or other banks with lower threshold MABs. The News MinuteIndia Today
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