ICICI Bank Lowers Minimum Balance After Customer Pushback: Check New Rules!

The minimum balance requirement for its new savings bank accounts opened on or after August 1 was raised five times to Rs 50,000.

MAB is the minimum balance that a customer is required to maintain in a bank account. If the balance falls below the required amount, the bank levies a penalty.

Source : ICICI Bank

In a U-turn, ICICI Bank has slashed the minimum monthly average balance (MAB) requirement to Rs 15,000 from earlier steep hike of Rs 50,000, citing "valuable feedback" from customers.

The minimum balance requirement for its new savings bank accounts opened on or after August 1 was raised five times to Rs 50,000.

"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 help us serve them better," ICICI Bank posted on its website.

Similarly, the MAB for semi-urban and rural locations have been revised downwards to Rs 7,500 and Rs 2,500 respectively, it said.

Before August 1, the MAB for semi-urban and rural was Rs 5,000. Even after the rollback, the bank has effected a 50 per cent hike across all these segments.

However, the bank said, the revised MAB requirements are not applicable to salary accounts, senior citizens/pensioners (above 60 years), basic savings bank deposit account/PM Jandhan Yojana, and accounts for people with special needs.

They are also not applicable to savings accounts opened before July 31, 2025.

MAB is the minimum balance that a customer is required to maintain in a bank account. If the balance falls below the required amount, the bank levies a penalty.

In case account holders fail to meet the MAB, customers will be liable to pay penal charges of 6 per cent of the shortfall in required MAB, or Rs 500, whichever is lower.

The balance in the savings bank account of ICICI Bank earns an interest of 2.5 per cent per annum, it said.

The hike in MAB comes at a time when public sector banks have rationalised their penalties or completely waived them off.

Led by the country's largest lender, State Bank of India (SBI), other public sector lenders like Punjab National Bank, Canara Bank, and Indian Bank, too, waived off penal charges for failing to maintain the MAB in all savings accounts.

Most public sector banks (PSBs) have removed their minimum balance charges in general savings bank accounts, while some have rationalised to promote financial inclusion, Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha on Monday.

The charges are removed/rationalised as part of their business strategy with the commercial wisdom, in view of the perceived benefits which may arise in terms of growth in deposits, among others, he had said. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)