ICICI Bank Revises Minimum Balance Rules: New Charges, Who’s Affected, and Penalty Details

ICICI Bank has rolled back its recent steep hike in minimum account balance requirements, following widespread public backlash. The new rules, effective from August 13, 2025, apply to all savings accounts opened after August 1, 2025.

New Minimum Balance Requirements

According to the bank’s official website, the revised minimum monthly average balance (MAB) is now:

• Urban & Metro branches: ₹15,000 (reduced from ₹50,000)
• Semi-Urban branches: ₹7,500 (down from ₹25,000)
• Rural branches: ₹2,500 (down from ₹10,000)

What is Minimum Account Balance?

It is the lowest amount that must be maintained in a savings account each month to avoid penalty charges. This amount varies based on the account type and branch category.

Who Will Be Affected?

Only ICICI Bank savings account holders who opened accounts after August 1, 2025 will be subject to the new rules.

Penalty for Non-Compliance

If the required MAB is not maintained, the bank will levy 6% of the shortfall amount or ₹500, whichever is lower. Previously, the penalty was capped at ₹450.

Comparison with Other Major Banks

• SBI: No minimum balance requirement for any savings account.
• HDFC Bank: ₹10,000 MAB for urban branches; ₹5,000 for semi-urban; ₹2,500 for rural. Customers can also maintain a fixed deposit as an alternative.
• Canara Bank & Yes Bank: No minimum balance requirement.

Why the Backlash?

Earlier this month, ICICI Bank had hiked the MAB five-fold for metro and urban branches to ₹50,000 and raised requirements in semi-urban and rural areas as well. The steep hike drew widespread criticism, prompting the bank to announce this revised, lower balance policy.