ICICI Bank cuts MAB requirement from Rs 50k to Rs 15k amid customer criticisms

New Delhi, Aug 14 (UNI) ICICI Bank has reversed its recent decision of maintaining a minimum average balance (MAB) of Rs 50,000 for customers living in metros or urban areas.

The Bank also reversed the MAB requirements for customers living in semi-urban and rural areas.

On July 31, ICICI Bank announced the steep hikes in MAB and set them at Rs 50,000 for customers living in metros, Rs 25,000 in semi-urban areas, and Rs 10,000 in rural areas.

The Bank’s move faced major criticism from customers as it was more than its counterparts like HDFC.

ICICI Bank posted on their official website, “ Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences.

We thank our customers for their continued trust and feedback, which helps us serve them better.”
Under the new revision, which will come into effect from September 1, the bank has set the limit of 15,000 minimum average balance (MAB) for people living in metros and urban locations.

Moreover, customers living in semi-urban and rural areas need to maintain a minimum average balance of Rs 7,500 and Rs 2,500, respectively.
In case if the customer fails to meet the MAB requirement, then the bank will charge about 6 per cent of the shortfall or Rs 500, whichever is lower.
Generally, banks establish minimum balance requirements to ensure account stability and customer benefits.

The MAB requirement is crucial as it allows banks to manage funds, offer services, and potentially provide a reward to customers.
ICICI Bank reversed its earlier decision due to the customer backlash and feedback received from experts.

Moreover, many customers also termed the bank’s move as ‘Elitist’ and they argued that it had excluded low and average-income individuals.
Experts also pointed out this move as the bank’s push towards premiumization and the intent of selling their exclusive offers and services to the customers.