ICICI Bank Raises Minimum Balance For Savings Account To Rs 50,000 For New Customers, Effective August 1

ICICI Bank has announced a steep hike in the monthly minimum average balance (MAB) requirement for savings bank accounts in the metro areas to Rs 50,000. This increased MAB is applicable for all new savings accounts opened after August 1, 2025. 

Customers in the metro cities and urban areas need to maintain an average monthly balance of Rs 50,000 in their savings account, whereas the MAB requirement for semi-urban and rural area customers has been raised to Rs 25,000 and Rs 10,000, respectively. Notably, this hike is applicable to the new accounts opened after August 1, 2025.

The new MAB limits, effective August 1, 2025 are as follows: 

Areas                                      Previous MAB limit     New MAB limit

Urban areas                                  Rs 10,000                           Rs 50,000    

Semi-urban areas                          Rs 5000                               Rs 25,000

Rural areas                                     Rs 2,500                              Rs 10,000

Will It Impact ICICI Bank’s Customers?

The minimum average balance requirement means that a customer has to maintain that amount on average in the account on a monthly basis. In case of not maintaining the balance, the bank will levy a penalty on the customer and deduct the charges for non-maintenance of balance. The bank had informed the customers of the MAB requirement at the time of opening the account so that they can choose the suitable account based on their requirements.

Notably, in the case of ICICI Bank, the savings account balance requirement was Rs 10,000 until this change, and the hike in MAB is steep.

However, according to media reports, there will be no change in the MAB requirement for older customers of the bank. For older customers in urban areas, the requirement will remain Rs 10,000, and in semi-urban and rural areas, Rs 5,000.

Penalty For Not Maintaining The Minimum Average Balance

The bank charges a penalty of 6 per cent on the shortfall amount or a minimum of Rs 500 as non-maintenance charges.

ICICI Bank Cash Transaction Limits

The bank has also revised its cash transaction charges on cash deposits at the branch and in the cash deposit machines. It allows three complimentary transactions per month to customers, and beyond that, charges Rs 150 per transaction. Amount-wise, a Rs 1 lakh value transaction in a month is free, and beyond it, it will charge Rs 3.50 per Rs 1,000 or Rs 150, whichever is higher. Depositing cash in the cash recycler machines (CRM) on holidays or during non-working hours will attract Rs 50 per transaction; however, only when total deposits in a month exceed Rs 10,000. These machine deposit charges are in addition to the cash transaction charges.

Similar to cash deposits, three cash withdrawals are also free per month. Beyond that, the bank will charge Rs 150 per transaction. The cumulative withdrawals up to Rs 1 lakh will be free per month, and exceeding the limit will attract charges, Rs 150 or Rs 3.5 per Rs 1,000, whichever is higher. The bank will also charge Rs 23 per financial transaction after the first three transactions from a non-ICICI ATM at select locations. For non-financial transactions, it is Rs 8.50 per transaction after exhausting the free limit.