ICICI Bank Tightens Rules: ₹50,000 Minimum Balance for New Savings Accounts

ICICI Bank Tightens Rules: ₹50,000 Minimum Balance for New Savings Accounts

August 9, 2025 — ICICI Bank, India’s second-largest private lender, has introduced significant changes to its savings account policies, raising the minimum average monthly balance (MAMB) requirements for new account holders. The new rules, effective from August 1, 2025, are aimed at repositioning the bank’s customer base toward premium segments.

Revised Minimum Balance Requirements

For savings accounts opened on or after August 1, the new MAMB thresholds are:

Branch Type	New MAB	Old MAB
Metro & Urban	₹50,000	₹10,000
Semi-Urban	₹25,000	₹5,000
Rural	₹10,000	₹2,500

Existing customers will continue under the previous limits.

Penalty for Non-Compliance

Customers who fail to maintain the required MAMB will face a penalty of 6% of the shortfall or ₹500, whichever is lower. However, charges may be waived if the customer qualifies under ICICI’s enrolled program criteria.

Cash Transaction Policy Updates

ICICI Bank has also revised its cash transaction rules:

• Three free cash deposits/withdrawals per month at branches or Cash Recycler Machines

• Beyond that, ₹150 per transaction will apply

• Monthly free limit: ₹1 lakh; beyond this, ₹3.5 per ₹1,000 or ₹150, whichever is higher

• Third-party deposits/withdrawals capped at ₹25,000 per transaction

• Non-working hour deposits (4:30 PM–9:00 AM or holidays) over ₹10,000 will attract an additional ₹50 fee per transaction

Other Charges

• ECS/NACH debit returns due to insufficient funds: ₹500 per instance (max 3 per month)

• Outward cheque returns: ₹200 per instance for financial reasons

• Inward cheque returns: ₹500 for financial reasons, ₹50 for non-financial reasons

• Declined ATM/POS transactions due to insufficient balance: ₹25 per instance

Industry Impact

This move positions ICICI Bank as one of the most premium-focused banks in India. In contrast, public sector banks like SBI have scrapped minimum balance requirements altogether. Customers may now reconsider their banking choices, opting for banks with lower thresholds or basic savings accounts without such conditions.