ICICI Bank increases minimum balance requirement for new metropolitan and urban account holders to INR 50,000.
ICICI Bank, India's second-largest lender, has announced revised minimum average balance (MAB) requirements for its savings accounts, effective from August 1, 2025. The changes come in response to customer feedback and aim to expand the bank's premium customer base.
Starting August 1, the new MAB requirements for ICICI Bank savings accounts opened on or after that date are as follows:
| Location Type | Minimum Average Balance (₹) | |-----------------|-----------------------------| | Metro & Urban | 15,000 | | Semi-Urban | 7,500 | | Rural | 2,500 |
These new requirements reflect significant changes from earlier hikes and apply only to new accounts opened from August 1, 2025. Accounts opened before July 31, 2025, are exempt from these new limits.
Existing customers in both semi-urban and rural areas will continue with the earlier requirement of Rs 5,000. For rural customers, the monthly minimum average balance requirement remains at Rs 10,000 for new account holders.
The MAB is the monthly average balance that customers need to maintain; failing to do so incurs penalties. The penalty for not meeting the new MAB requirements will be 6% of the shortfall or Rs 500, whichever is lower.
Customers are advised to visit ICICI Bank's official website for detailed information on the MAB requirements. It's worth noting that several banks are reportedly softening their penalty structures, and State Bank of India, the country's largest lender, has already scrapped all minimum balance charges.
The move by ICICI Bank is part of a broader trend in the banking sector to attract and retain premium customers. While HDFC Bank has set up an oversight department for board-level updates, this information is not related to ICICI Bank.
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- ICICI Bank's revised MAB requirements for savings accounts opening from August 1, 2025, stand at INR 15,000 for metro and urban areas, INR 7,500 for semi-urban areas, and INR 2,500 for rural areas.
- Existing customers in semi-urban and rural areas will continue to maintain the earlier MAB of INR 5,000, while new rural account holders are required to maintain a minimum of INR 10,000.
- Failing to maintain the new MAB incurs a penalty of 6% of the shortfall or INR 500, whichever is lower.
- The finance industry, including ICICI Bank and other banks like State Bank of India, are adjusting their penalty structures as part of an ongoing effort to attract and retain premium customers in the banking-and-insurance sector.
