ICICI Bank Revises Minimum Balance Requirements: What Are the New Rules?
ICICI Bank cuts new savings account MAB to ₹15,000 (metro), ₹7,500 (semi-urban), ₹2,500 (rural) after backlash.
Ellofacts
ICICI Bank Revises Minimum Balance Requirements: What Are the New Rules?
Introduction
In early August 2025, ICICI Bank proposed a steep hike to its Monthly Average Balance (MAB) requirements, prompting overwhelming backlash. Responding to consumer outrage, the bank swiftly rolled back the increases. Here’s your detailed breakdown of what changed—and what that means for new savings account holders.
Timeline of Events
| Date | Event Description |
|---|---|
| Aug 1, 2025 | ICICI Bank's new minimum balance rules initially came into force for new savings accounts. |
| Aug 9, 2025 | Reports emerge of steep hikes: ₹50,000 (metro/urban), ₹25,000 (semi-urban), ₹10,000 (rural). |
| Aug 13, 2025 | Following widespread criticism, ICICI rolls back the hike to more reasonable thresholds. |
What Are the Revised Minimum Balance Requirements?
The updated MAB requirements for new savings accounts (for those opened on or after August 1, 2025) are:
| Location Type | Revised MAB (₹) | Previous Intended MAB (₹) | Applies To New Accounts? |
|---|---|---|---|
| Metro / Urban | 15,000 | 50,000 | Yes |
| Semi-Urban | 7,500 | 25,000 | Yes |
| Rural | 2,500 | 10,000 | Yes |
These figures reflect the bank’s updated policy after pushback from customers.
Who Does This Affect—and Who Doesn’t?
Applies To:
Only new savings accounts opened on or after August 1, 2025 are subject to these revised MABs. Existing accounts retain their previous MAB requirements.
Exemptions:
The following categories are exempt from MAB requirements (no minimum balance needed):
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Salary accounts
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Senior citizens (above 60 years)
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Pensioners (below 60 years)
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Students from 1,200 designated institutions
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Basic Savings Bank Deposit Accounts (BSBDA) / PMJDY / Accounts for Persons with Special Needs
Penalty for Non-Compliance
If the required MAB isn’t maintained, the bank levies a penalty of 6% of the shortfall or ₹500, whichever is lower.
What Led to the Change?
ICICI’s initial increase to ₹50,000 for metro/urban accounts incurred sharp criticism—netizens, influencers, and media widely labeled it “elitist” and exclusionary. The move was seen as making banking less accessible for ordinary savers. In response, ICICI trimmed the MAB, citing “valuable customer feedback” and a desire to meet customer expectations.
What Should New Account Holders Do?
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Check the MAB requirement based on your branch type (metro/urban, semi-urban, or rural) before opening the account.
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Explore exemptions if you’re eligible (like salary account, student, or senior citizen).
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Monitor your Monthly Average Balance (MAB) regularly to avoid penalties.
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Compare with other banks, especially public sector banks like SBI, which generally have zero or lower minimum balance requirements.
TL;DR Summary
Revised MAB (new accounts from Aug 1, 2025):
-
Metro / Urban = ₹15,000
-
Semi-Urban = ₹7,500
-
Rural = ₹2,500
Old raise (reversed):
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Metro / Urban had been set at ₹50,000
-
Semi-Urban at ₹25,000
-
Rural at ₹10,000 (briefly before rollback)
Penalty: 6% of shortfall or ₹500 (whichever is lower)
Exemptions: Salary accounts, senior/pensioner under 60, certain students, BSBDA/PMJDY, special needs.
