ICICI Bank Raises Savings Account Minimum Balance; Check The New Rates Here

This change positions ICICI Bank at the top of the chart in terms of MAB requirements among Indian banks, setting a new industry benchmark

Customers failing to meet the new balance criteria will face penalties

Source : ICICI Bank

ICICI Bank, the country’s second-largest private sector lender, has announced a major revision to its minimum monthly average balance (MAB) norms for savings accounts, marking one of the steepest hikes in the domestic banking sector. The revised requirements will take effect from August 1, 2025, and will apply to all savings accounts opened on or after that date.

Under the new framework, customers in metro and urban branches will need to maintain an average monthly balance of Rs 50,000, up sharply from the existing Rs 10,000. Semi-urban branch account holders will now have to maintain Rs 25,000, compared to the earlier Rs 5,000 requirement. In rural areas, the MAB has been increased from Rs 2,500 to Rs 10,000.

This change positions ICICI Bank at the top of the chart in terms of MAB requirements among Indian banks, setting a new industry benchmark.

Penalty Rules For Shortfalls

Customers failing to meet the new balance criteria will face penalties. The bank has set a charge of 6 per cent of the shortfall or Rs 500, whichever is lower. For instance, a Rs 10,000 shortfall in a metro branch would normally mean a penalty of Rs 600, but under the revised rules, the amount payable will be capped at Rs 500.

Tighter Cash Transaction Limits

In addition to the MAB hike, ICICI Bank has revised its cash transaction policy. Account holders will now get three free cash deposit transactions per month, limited to a combined value of Rs 1 lakh. Transactions beyond this threshold will attract a fee of Rs 150 per transaction or Rs 3.50 per Rs 1,000 deposited—whichever is higher.

If customers exceed both the transaction count and the total value limit in the same month, the higher charge will be applied. The bank has also capped third-party cash deposits at Rs 25,000 per transaction.