In a move that has sent shockwaves across the Indian banking landscape, ICICI Bank has sharply increased the minimum balance requirement for new savings account holders. Effective August 1, 2025, customers opening new accounts will now be required to maintain a significantly higher Monthly Average Balance (MAB) — a step that marks a clear shift toward premium banking services.
The changes are striking. In metro and urban branches, the minimum balance has leapt from ₹10,000 to ₹50,000 — a 400% increase. Semi-urban customers will see their MAB jump from ₹5,000 to ₹25,000, while rural account holders will now need to keep ₹10,000 instead of the earlier ₹2,500 or ₹5,000. Importantly, existing customers are not impacted by this revision and will continue under the old rules.
The penalties for non-compliance are also noteworthy. Falling short of the required MAB will result in a charge equal to 6% of the shortfall or ₹500, whichever is lower. This means that for new customers, account discipline will be more critical than ever.
Alongside the hike, ICICI Bank has also fine-tuned its fee structure. Customers will enjoy three free cash deposits or withdrawals per month at branches or cash recycler machines. After this limit, each additional transaction will attract a fee of ₹150. There is also a monthly free deposit limit of ₹1 lakh — beyond that, the bank will charge ₹3.5 per ₹1,000 or ₹150, whichever is higher. Third-party cash transactions are capped at ₹25,000 per transaction, and off-hours deposits made after 4:30 pm or on holidays will incur a ₹50 fee if monthly deposits exceed ₹10,000. ATM charges at non-ICICI ATMs in six metro cities will stand at ₹23 for financial transactions and ₹8.5 for non-financial transactions after three free transactions per month.
Compared to its peers, ICICI’s move is bold. Many public sector banks, including SBI, have eliminated non-maintenance penalties altogether in recent years. ICICI, however, appears to be repositioning its savings accounts towards customers who can maintain higher balances, potentially offering them more value-added services in return.
The public reaction has been polarised. Critics argue that such a steep MAB will alienate middle- and lower-income customers in a country where the average monthly income is far lower than the new threshold. Social media has been buzzing with discontent, with some calling the move “elitist” and “out of touch.” On the other hand, supporters see this as a strategic step towards targeting a premium clientele and improving service quality for high-value customers.
For individuals and businesses alike, the message is clear: as banks recalibrate their offerings, customers need to reassess where they park their savings. For FbsCoach readers, this development serves as a timely reminder to stay informed about changes in banking policies, evaluate account options regularly, and ensure that financial planning aligns with evolving market realities.
Previous Blog: U.S. Imposes 50% Tariffs on Indian Goods: A Turning Point in Trade Relations
