ICICI Bank has increased the minimum average balance (MAB) requirement for new savings accounts from Rs 10,000 to Rs 50,000 across both urban and rural areas. Accounts with balances below this threshold will attract penalty charges. The revision, effective from August 1, 2025, will make ICICI’s MAB the highest among domestic banks in India.
Under the revised structure, savings account holders in metro and urban branches must maintain a minimum average balance of Rs 50,000, up from Rs 10,000 earlier. For semi-urban branches, the requirement has been raised to Rs 25,000 from Rs 5,000, while in rural branches, the MAB has increased to Rs 10,000 from Rs 2,500.
Also Read | Government-e-Marketplace clocks transactions worth Rs 5.4 lakh crore in GMV in FY25.
Customers failing to maintain the stipulated MAB will be charged a penalty of 6% of the shortfall or ₹500, whichever is lower.
The move marks a significant shift for the private lender at a time when other banks are rationalising penalties. The State Bank of India (SBI) abolished its minimum balance rule in 2020, while most other banks continue to maintain far lower thresholds — typically between Rs 2,000 and Rs 10,000 — to manage operational costs.
By comparison, HDFC Bank requires a minimum average balance of Rs 10,000 in metro and urban branches, Rs 5,000 in semi-urban branches, and Rs 2,500 in rural branches. Banks generally impose MAB rules to cover operational expenses and investments, with penalties levied on customers falling below the specified limit.
Charges on Cash Transaction
The bank also increased charges for cash transactions. If you deposit cash in the branch or through the machine more than three times, a fee of Rs 150 will be charged for every transaction. Similar charges apply for withdrawing cash.
For transactions at non-ICICI Bank ATMs in six metro cities—Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad—the bank will charge Rs 23 on each financial transaction and Rs 8.5 on each non-financial transaction after the first three transactions in a month. This limit will apply to total transactions, both financial and non-financial.
Cash deposits will be charged a minimum of Rs 50 per transaction during bank closure, i.e., from 4.30 pm to 9 am, and on holidays if the total transaction is above Rs 10,000 in a month.
NOTE: These new rules will be apply for the new account holders who have opened accounts from August 1, 2025.