ICICI Bank has dropped a bombshell for its savings account holders. Starting August 1, 2025, the bank will require a minimum monthly average balance (MAB) of ₹50,000 for new savings accounts in metro and urban branches, a massive jump from the current ₹10,000.
The steep hike will hit customers differently depending on where they bank:
Metro & Urban branches: Minimum balance up from ₹10,000 to ₹50,000
Semi-urban branches: From ₹5,000 to ₹25,000
Rural branches: From ₹2,500 to ₹10,000
Fail to maintain this? Be ready to pay a penalty of 6% of the shortfall or ₹500, whichever is lower. Until now, the penalty was capped at ₹450, with charges varying by branch location.
This move is expected to affect a huge chunk of customers, especially in rural and semi-urban areas. Many may now consider switching to banks with lower minimum balance requirements to avoid monthly penalties.
Withdrawal Rules Stay Tight
Cash withdrawals at branches: Free for the first 3 transactions per month
After that: ₹150 per transaction
Free monthly withdrawal limit: ₹1 lakh in total
Beyond ₹1 lakh: ₹3.5 per ₹1,000 or ₹150, whichever is higher
Third-party withdrawals: Capped at ₹25,000 per transaction
Social Media Backlash
The announcement has triggered a wave of criticism online. Many are urging the RBI and the Finance Minister to intervene, fearing that other private banks might follow ICICI Bank’s lead.
