ICICI Bank Reverses Course on Minimum Balance Requirement

In response to customer feedback, ICICI Bank has decided to lower its minimum monthly average balance (MAB) requirement for savings accounts from Rs 50,000 to Rs 15,000. This decision followed an earlier increase that saw MAB for new savings accounts raised by five times compared to previous levels.

The bank has also adjusted the MAB for semi-urban and rural branches to Rs 7,500 and Rs 2,500 respectively, though the new requirements do not affect salary accounts, senior citizens, or accounts opened before July 31, 2025. Previously, the MAB for semi-urban and rural areas was Rs 5,000.

This rollback contrasts with the trend among public sector banks, led by the State Bank of India, to waive or reduce penal charges for not maintaining the MAB, aiming to facilitate financial inclusion. Despite the adjustments, ICICI Bank continues to impose a penalty if the balance falls below the required amount, charging customers 6% of the shortfall or Rs 500, whichever is lower.

(With inputs from agencies.)