Effective August 1, 2025, ICICI Bank has sharply raised the minimum average balance (MAB) requirement for its savings accounts across all branch categories. For metro and urban branches, the new MAB is ₹50,000, up from ₹10,000. In semi-urban areas, the requirement has increased to ₹25,000 from ₹5,000, while rural branches now require ₹10,000, compared to the earlier ₹2,500.
This steep increase is likely to affect a wide range of customers, particularly those in rural and semi-urban regions. Failure to maintain the specified MAB may result in penalties, potentially burdening low-income account holders. As a result, some customers might consider switching to banks with lower balance requirements or opening basic savings accounts with no MAB conditions. To avoid penalties, others may need to adjust their financial planning.
Customers falling short of the MAB will be charged 6% of the shortfall or ₹500, whichever is less—unless they meet program criteria. In Family Banking, the group must maintain 1.5 times the MAB to avoid individual penalties. Pensioners are exempt. Additional charges apply for cheque returns, ECS/NACH failures, and declined ATM/POS transactions due to insufficient funds.
