ICICI Bank, one of India’s leading private lenders, has announced a significant revision to its savings account policy, increasing the minimum average monthly balance (MAMB) for metro and urban branches to ₹50,000. The change, effective from August 1, 2025, applies to all new savings accounts opened thereafter.
This marks a 400% hike from the previous requirement of ₹10,000 and positions ICICI Bank as having the highest minimum balance threshold among domestic banks. Semi-urban branches will now require ₹25,000 (up from ₹5,000), while rural branches must maintain ₹10,000 (previously ₹2,500).
Penalty Structure and Service Charges
Customers failing to maintain the required balance will face penalties capped at ₹500 or 6% of the shortfall, whichever is lower. For instance, a ₹10,000 shortfall would normally incur a ₹600 penalty, but under the new rules, the charge is limited to ₹500.
The bank has also revised its service charges:
- Cash Transactions: Three free cash deposits or withdrawals per month up to ₹1 lakh. Beyond this, ₹150 per transaction or ₹3.50 per ₹1,000 will apply.
- Third-Party Transactions: Capped at ₹25,000 per transaction.
- ATM Usage: After three free transactions at non-ICICI ATMs, charges of ₹23 (financial) and ₹8.50 (non-financial) will apply.
- Cheque Returns: ₹200 for outward and ₹500 for inward returns due to insufficient funds.
The move has sparked debate across social media, with many users criticizing the steep hike and questioning the rationale behind holding large sums in savings accounts. Analysts suggest the bank is targeting affluent customers for cross-selling financial products such as insurance and brokerage services.
In contrast, banks like HDFC maintain a ₹10,000 minimum for urban accounts, while the State Bank of India abolished minimum balance requirements altogether in 2020.
ICICI Bank has advised new customers to review the updated terms carefully and ensure compliance to avoid penalties. Existing account holders remain unaffected by the new rules.
