ICICI Bank raises minimum balance from Rs 10,000 to Rs 50,000

India’s second-largest lender, ICICI Bank, has revised its savings account policy for new customers effective August 1, 2025. The bank has significantly increased the minimum Monthly Average Balance (MAB), making it one of India’s highest in the private banking sector.

As per the new rule:

•    New MAB for Metro & Urban Branches: Rs 50,000 (up from Rs 10,000)
•    New MAB for Rural Branches: Rs 10,000

Change applies only to accounts opened post–August 1; existing customers are unaffected

Standard MAB Tiers for Regular Savings Accounts

Under the regular structure (for existing account holders), the MAB requirements were:

•    Metro/Urban: Rs 10,000
•    Semi-Urban: Rs 5,000
•    Rural: Rs 2,000
•    Gramin (Rural) Areas: Rs 1,000

Penalties for Non-Maintenance

Customers falling short of the required MAB face penalties:

•    A flat Rs 100 charge plus 5% of the shortfall, applicable in Metro, Urban, Semi‑Urban, and Rural branches. 
•    In some sources, penalties are noted as either a percentage of shortfall or a cap of Rs 500, whichever is lower. 

ICICI also notifies customers via SMS, email, or letter about MAB defaults. If the balance isn’t restored in the following month, continued penalties may apply.

Meanwhile, the country's largest lender, the State Bank of India (SBI), had scrapped the minimum balance rule in 2020. The majority of other banks maintain significantly lower thresholds, typically between Rs 2,000 and Rs 10,000.