New Delhi: ICICI Bank, India’s second-largest lender, has increased the monthly minimum average balance requirement for all types of accounts. The revised rules came into effect on August 1, impacting customers across segments.
According to the latest update on the bank’s website, customers in metro and urban areas who opened their savings accounts on or after August 1 must maintain a monthly average balance of Rs 50,000 to avoid penalties.
For existing customers, the minimum average balance (MAB) remains Rs 10,000. However, under the revised structure, metro and urban branch customers will now need to maintain Rs 50,000—up sharply from Rs 10,000. In semi-urban areas, the MAB requirement will increase from Rs 5,000 to Rs 25,000, while rural accounts must maintain Rs 10,000, compared to the earlier Rs 2,500.
Customers who fail to maintain the required minimum average balance will face a penalty of 6 per cent of the shortfall or Rs 500, whichever is lower. The bank also offers three free cash deposits into savings accounts each month; after that, a fee of Rs 150 will be charged per transaction.
The cumulative value limit is Rs 1 lakh per month. In April 2025, ICICI Bank reduced the interest rate on its savings accounts by 0.25 per cent, and savings bank accounts with deposits up to Rs 50 lakh will now earn 2.75 per cent interest.
The number of complementary cash withdrawal transactions per month also remains three. The third-party cash deposit of Rs 25,000 per transaction is applicable for all savings accounts. The hike in minimum average balance by a large private lender is in contrast to other banks that have rationalised their penalties.
The country’s largest lender, State Bank of India (SBI), had scrapped the minimum balance rule in 2020. The majority of other banks maintain significantly lower thresholds, typically between Rs 2,000 and Rs 10,000. (With IANS Inputs)