ICICI Bank New Rules: Effective August 1, 2025, ICICI Bank, India’s second-largest private lender, will significantly raise the minimum monthly average balance (MAB) requirement for its savings accounts. The change applies to all new accounts opened after that date and sets a new industry record for the highest MAB requirement among domestic banks.

Under the revised structure, customers at metro and urban branches must maintain a minimum average balance of ₹50,000, up sharply from ₹10,000. In semi-urban regions, the MAB will rise from ₹5,000 to ₹25,000, and in rural areas, it will increase from ₹2,500 to ₹10,000.

Penalty Charges Update;

A penalty of Rs 500 or 6% of the statutory MAB deficiency, whichever is less, would be assessed by ICICI Bank. In a metro branch, for instance, a Rs 10,000 shortage would often result in a Rs 600 penalty; however, the new regulations set the price at Rs 500.

Also Read: What Are Credit Card Penalties: Complete Charges Explained

Additionally, the bank updated its guidelines for cash transactions. Consumers can avail of three complimentary cash deposit transactions each month, with a maximum total of ₹1 lakh. The bank charges ₹150 for each transaction or ₹3.50 for every ₹1,000 deposited, whichever is higher. If customers violate both the transaction count and value limits at the same time, the bank applies the higher of the two charges. The bank has capped the maximum amount for third-party cash deposits at ₹25,000 per transaction. For financial considerations, the bank fixed check return fees at ₹200 for outbound returns (customer-deposited checks) and ₹500 for inbound returns (customer-issued checks).

Highest of All the Peers:

The increase sets ICICI Bank apart from its competitors. HDFC Bank maintains its MAB requirement at ₹10,000 for metro and urban branches, ₹5,000 for semi-urban branches, and ₹2,500 for rural branches. In 2020, the State Bank of India, the country’s biggest lender, removed its minimum balance requirement. Most other banks keep their MAB criteria within the range of ₹2,000 to ₹10,000. Banking observers believe the move demonstrates ICICI Bank’s clear push toward premiumization, as it targets high-net-worth and mass-affluent clients who are more likely to buy extra financial products like insurance, investments, and brokerage services.

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