ICICI Bank Minimum Balance Hike: Rs 50,000 for New Savings Accounts

Bengaluru, August 10, 2025: In a significant move, ICICI Bank, India’s second-largest private lender, has raised the minimum average monthly balance (MAB) requirement for its savings accounts, effective from August 1, 2025. The new rules apply to all savings accounts opened on or after this date, marking a steep increase from previous thresholds and positioning ICICI Bank as having the highest MAB requirement among domestic banks. 

Revised Minimum Balance Requirements

For customers in metro and urban areas, the MAB has been increased to ₹50,000, up from the earlier ₹10,000—a 400% hike. In semi-urban branches, the requirement has risen to ₹25,000 from ₹5,000, while rural branches now mandate a minimum balance of ₹10,000, up from ₹2,500. Existing account holders are unaffected and will continue with the previous MAB requirements of ₹10,000 (metro/urban), ₹5,000 (semi-urban), and ₹2,500 (rural).

The bank has implemented penalties for customers who fail to maintain the stipulated minimum average balance (MAB). Specifically, the penalty will be 6% of the shortfall or ₹500, whichever is lower. For example, if there is a ₹10,000 shortfall in a metro branch account, the penalty will be ₹500, as this is the maximum cap. Notably, pensioners and holders of Basic Savings Bank Deposit Accounts (BSBDAs) including those opened under the Pradhan Mantri Jan Dhan Yojana are exempt from these requirements, as these accounts remain zero-balance by design. 

New Updated Transaction Charges 

ICICI Bank has updated its cash transaction policies in line with the recent MAB increase. Customers now have access to three complimentary cash deposits or withdrawals per month, with a combined ceiling of ₹1 lakh. Beyond this quota, the bank will apply a charge of ₹150 per transaction or ₹3.50 per ₹1,000—whichever results in a higher fee. For third-party cash deposits and withdrawals, the limit is set at ₹25,000 per transaction. Other notable charges include ₹200 for outward cheque returns, ₹500 for inward cheque returns due to insufficient funds, and ₹25 for declined transactions at non-ICICI ATMs or POS terminals stemming from inadequate account balances.

ICICI Bank’s clearly shifting gears, zeroing in on high-net-worth and mass-affluent clients. That’s the core of their premiumization push which focus less on the everyday account holder, and more on folks likely to explore a broader suite of offerings such as think investments, insurance, maybe even wealth management services if they’re feeling fancy.

Industry watchers point out that deepening ties with these wealthier clients just makes business sense—they’re the ones who’ll probably tap into more profitable products. Still, let’s not gloss over the obvious downside: regular retail customers who aren’t thrilled about higher minimum balance requirements are probably eyeing the exit. And no wonder, with rivals like SBI scrapping minimum balance penalties a while back, plus digital-first banks rolling out zero-balance accounts left and right. The competitive landscape’s definitely shifting, and ICICI’s move could end up driving a chunk of its traditional base toward these more flexible options.

Keywords: ICICI Bank, minimum balance, savings account, MAB, new rules 2025, banking, India, metro, urban, semi-urban, rural, penalty charges, cash transactions, premium banking, State Bank of India, zero-balance accounts