ICICI Bank Revises Minimum Monthly Balance, Civil Society Protests: What this Means for Account Holders?

In a significant change for urban customers, the minimum average monthly balance (MAMB) requirement for savings bank accounts at ICICI Bank has been revised, along with certain service charges. These changes will only be applicable to new savings accounts opened on or after August 1, 2025.

Under the new rules, the MAMB for new accounts in metro and urban areas will rise from ₹10,000 to ₹50,000. For semi-urban and rural branches, these thresholds will be higher. Additionally, the bank has updated limits and fees for cash transactions and ATM usage.

What’s the New Change?

The private lender has now raised the minimum balance requirement for new savings accounts opened on or after August 1 by five times to Rs 50,000.

Till July 31, 2025, the minimum monthly average balance (MAB) for savings bank accounts for ICICI Bank customers was Rs 10,000.

In a similar manner, the ICICI Bank website also specifies that the MAB for semi-urban locations and rural locations have been increased five times to Rs 25,000 and Rs 10,000, respectively.

As of now, existing customers will continue under their current account terms unless ICICI Bank communicates separate changes.

Civil Society Protests

Following this move by ICICI Bank, a civil society organisation advocating banking stakeholders' interests has written to the Finance Ministry, urging its intervention into the bank’s decision to raise the minimum average balance (MAB) requirement for new savings accounts. The organisation further said that such a move is detrimental to the government's vision of inclusive banking and growth.

Writing a letter to the Finance Secretary, 'Bank Bachao Desh Bachao Manch' called the private lender's decision as "unjust and regressive".

Additionally, the civil society organisation called for the immediate withdrawal of the decision, and requested the government to protect depositors' interests and ensure broader financial inclusion.

Failure to Maintain Minimum Balance to Attract Penalty

As per the updated rules, new account holders who open accounts with the bank after August 1, will be required to maintain a higher minimum account balance in the savings account. If the person fails to do so, it may attract a penalty.

The average monthly balance at ICICI Bank is tracked on a monthly basis. This basically means that any days when the balance falls below the required ₹50,000-limit for urban regions, also known as shortfall days, it can be offset by maintaining a higher balance on other days within the same month. No penalty will be levied as long as the overall average meets the prescribed limit.

Will Salary Account Holders be Impacted?

The revised norms do not affect the bank’s salary account holders. This is because salary accounts are generally zero-balance accounts, which means that holders are not required to maintain any minimum balance.

Thereby, these account holders will not have to meet the higher MAMB requirement.

Minimum Balance Requirements for Other Banks

HDFC Bank, the country’s largest private sector lender has the average minimum balance requirement for regular savings accounts at ₹10,000 in metros and urban locations, and ₹5,000 in semi-urban areas. In case of rural areas, the bank mandates a balance of ₹2,500 for savings account holders. However, it is calculated on a quarterly basis.

As per a Mint report, this bank also does not stipulate a minimum average balance for salary account holders and Jan Dhan accounts. It levies a penalty for a host of savings accounts of 6% of the shortfall or ₹600, whichever is lower.

In case of state run banks, minimum account penalties have been dropping, in hopes to attract more customers. Mint reported last month that since June, public sector banks such as Canara Bank, Punjab National Bank, Indian Bank, Bank of Baroda, and Bank of India have dropped charges for not maintaining a minimum average balance in savings accounts, five years after India’s largest lender, State Bank of India (SBI), did so.