ICICI Bank has increased the minimum average balance for new savings accounts to ₹50,000 in metros from Aug 2025. Check rules, penalties, and alternatives.
Big Change in ICICI Bank Savings Account Rules
Starting August 1, 2025, ICICI Bank has raised the minimum average monthly balance (MAB) requirement for new, non-salary savings accounts.
The most significant change is in metro and urban branches, where the MAB jumps from ₹10,000 to ₹50,000 — a 400% hike.
This update is part of ICICI Bank’s premiumization strategy, focusing on higher-net-worth customers.
Important: Existing account holders will not be affected by this change, and pensioners remain exempt from the new MAB rules.
New Minimum Average Balance Requirements (Effective Aug 1, 2025)
| Location | Old MAB | New MAB | Increase |
| Metro/Urban | ₹10,000 | ₹50,000 | +400% |
| Semi-Urban | ₹5,000 | ₹25,000 | +400% |
| Rural | ₹2,500 | ₹10,000 | +300% |
This means that if you open a new ICICI Bank savings account in a metro city, you must maintain at least ₹50,000 as your average balance each month to avoid penalties.
Must Read: BRICS: A Global Force Facing U.S. Pressure and Shifting Ties with India and Brazil
How ICICI Bank Calculates MAB
The Minimum Average Balance is the average of your daily closing balances over a month.
Example: If your account has varying balances throughout August, ICICI Bank will sum all daily closing amounts and divide by the number of days in the month.
If the result is less than the required MAB (₹50,000 in metros), you will face a penalty.
Tip: To maintain ICICI Bank MAB in 2025, consider automating monthly transfers or consolidating funds from other accounts.
Penalties for Not Maintaining MAB
If your balance falls short:
- Penalty: 6% of the shortfall amount or ₹500, whichever is lower.
Updated cash transaction rules (from Aug 1, 2025):
- Free limit: 3 cash deposits/withdrawals per month, up to ₹1 lakh in total.
- Exceeding limit: ₹150 per transaction or ₹3.50 per ₹1,000 (whichever is higher).
- Third-party transactions: Limited to ₹25,000 per transaction.
These rules encourage digital transactions and reduce high-volume cash handling.
How ICICI Compares with Other Banks
- SBI: Removed all MAB requirements in 2020.
- HDFC Bank & Axis Bank: Urban MAB around ₹10,000.
- Kotak Mahindra Bank: Offers zero-balance options for certain accounts.
With this move, ICICI Bank is clearly targeting premium customers, unlike public sector banks that focus on financial inclusion.
Must Read: RBI May Introduce UPI Charges Soon: What It Means for Digital Payments in India
What It Means for You
If you are opening an ICICI Bank account after Aug 1, 2025, check if you can maintain the higher MAB. If not, consider:
- Public sector banks (like SBI) with zero MAB.
- Digital-first banks offering free accounts.
This change reflects a shift toward premium banking in India, but also raises concerns about accessibility for middle-class customers.
FAQ: ICICI Bank Minimum Balance Hike 2025
1. What is the new minimum balance for ICICI Bank savings accounts in 2025?
From August 1, 2025, the minimum average monthly balance (MAB) for new, non-salary savings accounts in metro and urban areas is ₹50,000. In semi-urban areas it is ₹25,000, and in rural areas it is ₹10,000.
2. Who is affected by this ICICI Bank MAB rule change?
Only new non-salary savings account holders who open accounts on or after August 1, 2025 are affected. Existing customers will continue with the previous MAB requirements.
3. Are pensioners exempt from the new MAB rules?
Yes. Pensioners are completely exempt from maintaining the new MAB and from any related penalties.
4. How is the Minimum Average Balance calculated?
The MAB is the average of your daily closing balances for the month. The bank adds up your end-of-day balances and divides by the number of days in the month.
5. What is the penalty for not maintaining MAB in ICICI Bank?
If your MAB falls below the required amount, the penalty is 6% of the shortfall or ₹500, whichever is lower.
6. What are the updated cash transaction rules from August 2025?
- Free: 3 cash deposits/withdrawals per month, up to ₹1 lakh total.
- Charges after limit: ₹150 per transaction or ₹3.50 per ₹1,000 (whichever is higher).
- Third-party transactions: Limited to ₹25,000 per transaction.
7. How does ICICI Bank compare with other banks on MAB requirements?
- SBI: No MAB since 2020.
- HDFC Bank & Axis Bank: Around ₹10,000 for urban accounts.
- Kotak Mahindra Bank: Zero-balance options for some accounts.
8. Where can I find the official ICICI Bank notice for this change?
Visit the ICICI Bank official website or contact your nearest branch for the updated terms and conditions.