New Delhi: ICICI Bank, India’s second-largest private bank, has increased the minimum average balance (MAB) requirement for savings accounts.
These changes took effect from August 1, 2025, and affect both new and existing customers.
New Rule for New Customers in Metro & Urban Areas
Customers who open new savings accounts on or after August 1 in metro and urban areas must now maintain a monthly average balance of Rs 50,000 to avoid penalties.
Changes for Existing Customers
Metro/Urban Areas: MAB increased from Rs 10,000 to Rs 50,000
Semi-Urban Areas: MAB increased from Rs 5,000 to Rs 25,000
Rural Areas: MAB increased from Rs 2,500 to Rs 10,000
Existing customers in these areas must now follow the revised MAB rules.
Penalty for Not Maintaining Minimum Balance
If customers fail to maintain the required MAB, a penalty of 6% of the shortfall or Rs 500 (whichever is lower) will be charged.
Cash Deposit & Withdrawal Rules
Free Deposits: 3 free cash deposits per month
Extra Deposits: Rs 150 per additional deposit
Monthly Deposit Limit: Rs 1 lakh total deposit per month
Free Withdrawals: 3 free cash withdrawals per month
Third-Party Deposit Limit: Rs 25,000 per transaction
Interest Rate on Savings Accounts Reduced
In April 2025, ICICI Bank reduced its savings interest rate by 0.25%. Now, accounts with balances up to Rs 50 lakh earn 2.75% interest per year.
How ICICI Bank Compares with Other Banks
While ICICI Bank has increased its MAB, many other banks have gone the opposite way:
SBI, the country’s largest lender, removed the MAB rule in 2020
Most other banks have lower MAB limits, usually between Rs 2,000 and Rs 10,000.
