‘90% of India makes less than ₹25,000 a month’: Jay Kotak slams ₹50,000 minimum bank balance rule

Mentioning the ICICI Bank minimum balance hike, Jay Kotak said 90 per cent of Indians make less than ₹25,000 a month.

Jay Kotak criticises bank's new minimum balance hike

“Every Indian must access our financial sector. 90% of India makes less than ₹25,000 a month. A ₹50,000 minimum balance implies a sum equal to ~94% of Indians monthly income is to be left with the bank at all times, else a fee!” he wrote on X.

The Co-Head at Kotak Mahindra Bank's digital banking arm, Kotak 811, said digital first is the way to go.

“Implication: physical cost to serve may be high”, Kotak shared. “Digital first is the way. If banks don’t do it, fintechs will. Banking should be for all Indians.”

Every Indian must access our financial sector. 90% of India makes less than ₹25,000 a month. A ₹50,000 minimum balance implies a sum equal to ~94% 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

The new rules for maintaining savings account

ICICI Bank's minimum average balance for savings accounts has been increased from ₹10,000 to ₹50,000 for urban accounts.

The MAB (Minimum Account Balance) for semi-urban locations and rural locations have also been increased five times ₹ ₹25,000 and ₹10,000, respectively, according to information available on the ICICI Bank website.

Non-maintenance of the ICICI Bank minimum balance will fetch a penalty, the bank said. The lender will charge 6 per cent of the shortfall in required MAB, or ₹500, whichever is lower, if you are from an urban area and not maintaining a ₹50,000 savings account balance.

The changes apply to ICICI Bank savings accounts opened on or after August 1. The minimum balance remains ₹5,000 for old customers in rural and semi-urban areas.

For old urban customers, the minimum account balance should be maintained at ₹10,000.

The ICICI Bank minimum balance hike has been criticised by many, with people calling the move discriminatory and elitist.

An individual commented, “In a country where 23 crore people live below the poverty line, ICICI thinks ₹50,000 is a ‘minimum’. Masterstroke!”

In a letter to the finance secretary, 'Bank Bachao Desh Bachao Manch' termed  ICICI Bank’s decision as "unjust and regressive".

“This retrograde decision undermines the principle of inclusive banking,” the forum’s joint conveners, Biswaranjan Ray and Soumya Datta, stated.

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