ICICI Bank, a major private sector bank, recently made changes regarding the minimum average balance (MAB) requirement.
Initially, ICICI had set a high MAB of Rs 50,000 for new accounts in metro and urban areas, which was met with strong customer opposition.
After the backlash, the bank withdrew this rule and introduced a new one, easing the burden on middle-class customers.
Government vs Private Banks
Public sector banks like SBI, PNB, and Canara Bank have removed the MAB requirement, offering relief to customers.
In contrast, private banks such as ICICI, HDFC, and Axis Bank still require customers to maintain a minimum balance.
Therefore, it’s important for customers to check the MAB policy of their bank before opening an account to avoid penalties.
ICICI Bank’s Updated Rule
Under the new rule, ICICI Bank requires an average minimum balance of Rs 15,000 in urban and metro areas, Rs 7,500 in semi-urban areas, and Rs 2,500 in rural branches.
Despite the reduction, these limits are still higher compared to many other banks that have lowered or removed their MAB conditions.
Minimum Balance Rules of Other Banks
SBI removed the minimum balance requirement for all rural and metro savings accounts back in 2020.
PNB and Canara Bank also eliminated MAB rules and penalties for all savings accounts, benefiting millions of account holders.
In rural areas, both SBI and PNB allow zero balance accounts.
Union Bank requires Rs 250 if you have a cheque book and Rs 100 without one.
HDFC Bank asks for Rs 2,500 minimum in rural accounts.
ICICI Bank requires between Rs 2,500 and Rs 7,500 in rural branches.
Axis Bank demands Rs 2,500 in rural areas.
Bank of Baroda asks for Rs 500 minimum balance.
IDFC First Bank requires either Rs 10,000 or Rs 25,000.
In urban and metro areas:
SBI and PNB allow accounts to stay active with zero balance.
Union Bank requires Rs 1,000 with cheque book, Rs 500 without.
HDFC Bank requires Rs 10,000.
ICICI Bank needs Rs 15,000.
Axis Bank asks for Rs 12,000.
Bank of Baroda asks for Rs 2,000.
IDFC First Bank demands Rs 10,000 or Rs 25,000.
