ICICI Bank hikes minimum balance to ₹50,000 on savings account: What does it mean?

ICICI Bank has raised the minimum average balance required for new savings accounts opened from August onwards. According to the lender’s official website, in metro and urban regions, the minimum average monthly balance (MAMB) now stands at ₹50,000 from the previous ₹10,000. For semi-urban branches, it is ₹25,000 from ₹5,000, and in rural branches, the requirement has doubled to ₹10,000 from ₹5,000.

What is the minimum account balance?

The minimum account balance is the lowest amount that must be maintained in a savings account throughout the month to avoid a penalty. Banks establish specific requirements depending on the type of account and the location of the branch.

What does the MAB hike mean for an ICICI customer?

If customers fail to maintain the revised minimum account balance, they will be charged 6 per cent of the shortfall in the required MAB or ₹500, whichever is lower.

Earlier, the penalty amount was ₹450, based on the difference between the minimum balance and the location of the branch, as Mint reported on June 1, 2025.

In addition to the minimum balance requirement, ICICI Bank has updated its service charges for cash transactions. Customers can now make three complimentary cash deposits at branches and cash recycler machines each month. After that, each transaction will cost ₹150. There is a total monthly limit of ₹1 lakh for free deposits; exceeding this will incur a fee of ₹3.5 per ₹1,000 or ₹150, whichever is higher. Additionally, third-party cash deposits are limited to ₹25,000 per transaction.