In a significant and widely discussed move, ICICI Bank has rolled out a substantial increase to its minimum Monthly Average Balance (MAB) requirements for new savings accounts, effective August 1, 2025. This five-fold hike has sent ripples through the banking community, prompting a closer look at the implications for prospective customers.
For those planning to open a new savings account with ICICI Bank, the financial commitment to avoid penalties has been considerably raised. This blog post breaks down the new rules, who they affect, and what this means for your banking choices.
The New Minimum Balance Landscape
The updated MAB requirements for savings accounts opened on or after August 1, 2025, are as follows:
| Branch Location | Previous MAB | New MAB |
| Metro and Urban | ₹10,000 | ₹50,000 |
| Semi-Urban | ₹5,000 | ₹25,000 |
| Rural | ₹2,500 | ₹10,000 |
It is crucial to emphasize that these changes only impact new customers. If you are an existing ICICI Bank account holder (with an account opened before August 1, 2025), you will continue to be subject to the previous, lower MAB requirements.
Penalties for Non-Compliance
For new accounts that do not maintain the revised MAB, ICICI Bank will levy a charge of 6% of the shortfall or ₹500, whichever is lower. This penalty is a direct consequence of the account balance dipping below the newly set thresholds.
The Strategy Behind the Hike
This assertive move by ICICI Bank is largely interpreted as a strategic pivot towards attracting a more affluent clientele. By raising the entry barrier, the bank appears to be focusing on high-net-worth individuals to whom it can offer a broader array of premium financial products and services. This approach stands in stark contrast to that of major public sector banks like the State Bank of India (SBI), which has eliminated MAB requirements altogether to foster greater financial inclusion.
How ICICI Bank Stacks Up Against Competitors
With this latest revision, ICICI Bank’s minimum balance for new urban savings accounts is now significantly higher than its primary competitors:
- HDFC Bank: ₹10,000 for urban locations
- Axis Bank: ₹12,000 for metro/urban locations
- State Bank of India (SBI): No minimum balance requirement
Exploring Exemptions: Zero-Balance Account Options
For individuals who find the new MAB requirements steep, ICICI Bank continues to offer accounts that are exempt from these stipulations. These include:
- Basic Savings Bank Deposit Accounts (BSBDA): These accounts, including those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), are designed as zero-balance accounts.
- Salary Accounts: Typically, these accounts for salaried individuals do not necessitate the maintenance of a minimum balance.
Public and Media Reaction
The announcement has triggered a flurry of conversations on social media and in financial news outlets. Many have expressed concern that the high requirements may exclude a significant portion of the population from banking with one of the country’s leading private banks. Conversely, some financial analysts view it as a clear and decisive business strategy to carve out a niche in the premium banking segment.
What This Means for You
If you are considering opening a new bank account, it is more important than ever to be aware of the specific MAB requirements and associated penalties. For those looking to bank with ICICI, a careful assessment of your ability to consistently maintain the new, higher balance is essential.
For existing customers of ICICI Bank, there is no immediate cause for concern as the old rules continue to apply. However, this development serves as a key indicator of the bank’s evolving strategy and is a point to consider for any future banking relationships.
In conclusion, ICICI Bank’s bold step to increase its minimum balance requirements is a clear signal of its strategic direction. While it may cater to a more affluent market, it also underscores the importance for consumers to stay informed and choose a banking partner that aligns with their financial capacity and needs.
