ICICI Bank increases minimum balance

ICICI Bank Minimum Balance – A Big New Change You Need to Know!

1. Introduction
From August 1, 2025, ICICI Bank has made a major change to its Minimum Monthly Average Balance (MAB) requirement for savings accounts. For metro and urban branches, the minimum balance requirement has jumped from ₹10,000 to a whopping ₹50,000 — that’s a five-fold increase!

2. Applies Only to New Customers
This new rule will only apply to savings accounts opened on or after August 1, 2025. If you already have an existing account, your current minimum balance requirement will remain unchanged.

3. New Balance Rules by Region
The revised MAB requirement is:

• Metro/Urban: ₹50,000

• Rural: ₹10,000 (earlier it was around ₹2,000)
  The bank has not clearly stated the new semi-urban balance requirement yet, but it is expected to be higher than before.

4. Zero-Balance Accounts Are Safe
Accounts like Salary Accounts, PM Jan Dhan Yojana accounts, and Basic Savings Bank Deposit Accounts (BSBDA) remain zero-balance accounts. This means they are not affected by the new MAB rule.

5. Why Such a Big Hike?
The bank might be aiming to attract high-value customers and encourage digital banking usage. However, critics say this could push lower-income customers towards zero-balance account types and away from standard savings accounts.

6. Old vs New
Before:

• Metro/Urban – ₹10,000

• Semi-Urban – ₹5,000

• Rural – ₹2,000

Now:

• Metro/Urban – ₹50,000

• Rural – ₹10,000
  (Semi-urban details not fully confirmed yet.)

7. Penalty for Not Maintaining MAB
Earlier, ICICI Bank charged ₹100 + 5% of the shortfall if you didn’t meet the MAB. It’s not yet confirmed if the penalty structure will change after the August revision, but expect it to be significant for the higher MAB.

8. Possible Impact
For middle and lower-income individuals, this could be a challenge. Many might shift to zero-balance accounts. On the other hand, ICICI Bank could use this change to strengthen its premium banking and digital offerings.

9. Tips for Customers

• If you have a Salary Account, you can continue enjoying zero-balance benefits.

• If you have trouble maintaining the new MAB, consider switching to a BSBDA or Jan Dhan account.

• Always confirm the requirements with your branch before opening a new account.

10. Conclusion
ICICI Bank’s MAB hike is a big move that reflects a shift towards premium customers. While it may be manageable for some, others will need to plan carefully to avoid penalty charges. Either way, it’s a reminder to stay informed and choose the right type of account for your needs.

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