ICICI Bank's New Minimum Balance Requirements

ICICI Bank has announced a significant increase in the minimum monthly average balance (MAB) for new savings accounts, effective from August 1, 2025. This change sees the requirement jump to Rs 50,000 in metro and urban branches, a fivefold increase from the previous Rs 10,000. Semi-urban and rural branches are not spared, with new limits set at Rs 25,000 and Rs 10,000, respectively.

Failure to meet these new requirements will result in a penalty of 6% of the shortfall or Rs 500, whichever is lower. However, certain accounts like salary accounts, PM Jan Dhan Yojana accounts, and basic savings bank deposit accounts remain exempt as zero-balance facilities.

Comparing Across the Banking Sector

The Reserve Bank of India has clarified that it does not set these limits, leaving the decision to individual banks. This has led to a wide variance in policies across the sector. For instance, public sector banks such as SBI and PNB have eliminated minimum balance penalties entirely, while private banks like ICICI and Axis maintain higher requirements.

What This Means for Customers

Higher-balance account holders at ICICI Bank will enjoy perks such as free NEFT transfers and up to three free cash transactions monthly. This move by ICICI Bank highlights the growing divide between private and public sector banks in terms of account requirements and customer benefits.