Facing strong criticism, ICICI Bank has reduced the minimum average balance (MAB) for new savings accounts in metro and urban areas from ₹50,000 to ₹15,000.
This comes after the bank recently increased the MAB from ₹10,000 to ₹50,000, which led to widespread customer dissatisfaction.
Updated MAB for Different Areas
Metro/Urban Areas: ₹15,000 (reduced from ₹50,000)
Semi-Urban Areas: ₹7,500 (reduced from ₹25,000)
Rural Areas: ₹2,500 (reduced from ₹10,000)
Customers who don’t maintain the required balance will still face penalty charges.
HDFC Bank Also Raises MAB
On the same day, HDFC Bank announced a new MAB of ₹25,000 for new savings accounts from August 1, 2025.
Penalty: 6% of the shortfall or ₹600, whichever is lower.
Other Banks Have Removed MAB
Public sector banks like SBI, PNB, and Canara Bank have eliminated MAB requirements and do not charge penalties for non-maintenance.
RBI: MAB Is Bank’s Choice
RBI Governor Sanjay Malhotra clarified that the decision to set a minimum balance lies with individual banks and is not regulated by the RBI.
Some banks set the limit at ₹10,000, others at ₹2,000, and many have removed it completely.
