New Delhi, Aug. 28 -- The announcement by ICICI Bank in August that it was raising its minimum balance requirement for new savings accounts by five times, from Rs.10,000 to Rs.50,000, received so much criticism that the bank backtracked within a couple of days. Since most Indians earn much less than Rs.50,000 a month, there was a sense that ICICI's actions amounted to financial exclusion of the majority.

The bank's response to the backlash was swift: it tempered the quantum of the hike to 50%, setting it at a considerably lower Rs.15,000. The quick damage control was probably sufficient to soothe customer outrage.

However, it would be wrong to view the move as "loot, thuggery of the middle class", as alleged by some netizens. Rather, it...