ICICI Bank hikes minimum balance requirement for new savings accounts by 5x to Rs 50,000

New Delhi: ICICI Bank has raised the minimum balance requirement for its new savings bank accounts opened on or after August 1 by five times to Rs 50,000. The minimum monthly average balance (MAB) for savings bank accounts till July 31, 2025 for ICICI Bank customers was Rs 10,000. Similarly, MAB for semi-urban locations and rural locations have been increased five times to Rs 25,000 and Rs 10,000, respectively, according to information available on the ICICI Bank website. In case account holders fail to meet the MAB, customers will be liable to pay penal charges of 6 per cent of the shortfall in required MAB, or Rs 500, whichever is lower. The balance in the savings bank account of ICICI Bank earns interest of 2.5 per cent per annum, it said.

The increased MAB will be applicable for new accounts opened on or after August 1, 2025. Customers who have opened accounts before August 1 will have to maintain the old level of MAB as of now. Salary account holders or PM Jandhan account holders and basic savings bank deposit account holders are exempt from this high MAB as these are zero balance accounts. Account holders with higher MAB will enjoy certain benefits like free NEFT fund transfer, complimentary three cash transactions per month, thereafter Rs 150 per transaction. GST shall be applicable on all mentioned charges, it said. The hike in MAB comes at a time when public sector banks have rationalised their penalties or completely waived them off. Led by the country's largest lender, State Bank of India (SBI), other public sector lenders like Punjab National Bank, Canara Bank, and Indian Bank, too, waived off penal charges for failing to maintain the MAB in all savings accounts. MAB is the minimum balance that a customer is required to maintain in the bank account. If the balance in the bank account falls below the required amount, then banks levy a penalty.