ICICI Bank Hikes Minimum Savings Balance Five-Fold for New Accounts
ICICI Bank has significantly increased its minimum balance requirements for new savings accounts, raising the monthly average balance (MAB) for urban locations from ₹10,000 to ₹50,000. The MAB for semi-urban and rural branches has also been increased five-fold to ₹25,000 and ₹10,000, respectively. The new rules apply to accounts opened on or after August 1. Customers failing to meet the MAB will face a penalty of 6% of the shortfall or ₹500, whichever is lower.
Unpacked:
No, the increased minimum balance requirements apply only to new savings accounts opened on or after August 1, 2025. Existing account holders will continue with the previous, lower minimum balance requirements.
ICICI Bank’s new minimum average balance of ₹50,000 for urban accounts is currently the highest among Indian domestic banks. Other major banks, such as HDFC and SBI, typically require much lower minimum balances for similar accounts.
ICICI Bank has not publicly detailed its reasoning, but such increases are generally aimed at improving the bank’s deposit base, managing operational costs, and encouraging higher average account balances, which can enhance profitability and liquidity.
Yes, salary accounts are exempt from the new minimum balance requirements. The increased minimum balances apply only to regular savings accounts opened after August 1, 2025.