ICICI Bank has announced a substantial increase in the minimum average balance (MAB) required for its savings accounts, with the new rules taking effect on August 1, 2025. This move has garnered significant attention and is expected to impact a large number of customers, particularly those in semi-urban and rural areas.
For customers in metro and urban regions, the minimum average balance has been raised sharply from ₹10,000 to ₹50,000. In semi-urban areas, the requirement has been quintupled from ₹5,000 to ₹25,000, while rural customers will now need to maintain ₹10,000, up from the previous ₹2,500. This steep hike makes ICICI Bank’s new MAB requirements among the highest in the domestic banking sector.
Customers who fail to maintain the new minimum monthly average balance will be subject to a penalty. The bank’s policy states that a charge of 6% of the shortfall or ₹500, whichever is lower, will be levied. This could place a financial strain on low-income account holders and may prompt many to reconsider their banking options, either by moving to a bank with lower requirements or by opting for a Basic Savings Bank Deposit Account (BSBDA), which has no minimum balance requirement.
However, the bank has stated that these charges can be waived if the customer meets the criteria of their enrolled banking program. In the “Family Banking” program, for example, the family as a collective must maintain 1.5 times the required eligibility criteria. If this collective balance is not met, non-maintenance charges will be applied individually to members who fail to meet their own MAB. The bank has also exempted pensioners from these charges.
In addition to the MAB changes, the bank has updated other service charges. For ECS/NACH debit returns due to insufficient funds, a charge of ₹500 per instance will be levied, with a maximum of three charges per month for the same mandate. Outward cheque returns will incur a fee of ₹200 per instance for financial reasons, while inward cheque returns will be charged ₹500 for financial reasons and ₹50 for non-financial reasons.