ICICI Bank, India’s second-largest private lender, has increased the monthly minimum average balance (MAB) requirement across all customer categories, effective August 1.
As per the bank’s website, customers in metro and urban areas opening savings accounts after August 1 must maintain an MAB of ₹50,000 to avoid penalties, up from the earlier ₹10,000 applicable to existing customers.
For new account holders in semi-urban locations, the MAB is set at ₹25,000, while in rural branches it is ₹10,000. Existing rural and semi-urban customers will continue with the lower requirement of ₹5,000 per month.
Failure to meet the MAB will attract a penalty of 6% of the shortfall or ₹500, whichever is less.
The bank now offers three complimentary cash deposits per month into savings accounts; subsequent deposits will incur a charge of ₹150 per transaction, with a cumulative monthly deposit limit of ₹1 lakh. Third-party cash deposits are capped at ₹25,000 per transaction for all accounts.
In April 2025, ICICI Bank reduced savings account interest rates by 0.25%, with deposits up to ₹50 lakh earning 2.75% annually. Customers are also allowed three free cash withdrawals per month.
This move contrasts with trends at other banks, many of which have eased MAB penalties. State Bank of India eliminated the rule in 2020, while most banks maintain far lower MAB thresholds ranging from ₹2,000 to ₹10,000.