What’s Changing at ICICI Bank?
ICICI Bank, one of India’s largest private lenders, has bumped up the minimum balance needed for newly opened savings accounts from August 2025. Here’s the lowdown:
- Metro & urban branches: Jump from ₹10,000 to ₹50,000
- Semi-urban branches: Hiked from ₹5,000 to ₹25,000
- Rural branches: Increased from ₹2,500 to ₹10,000
Existing accounts aren’t affected—they keep their older, lower MAB limits.
What Has Changed for ICICI Bank Customers?
| Branch Type | Old Minimum Balance (₹) | New Minimum Balance (₹) | Penalty for Shortfall | Free Cash Transactions (per month) | Free Cash Transaction Limit (₹) | Additional Transaction Charge (₹) | Third-Party Deposit/Withdrawal Limit (₹) |
|---|---|---|---|---|---|---|---|
| Metro & Urban | 10,000 | 50,000 | 6% of shortfall or ₹500 (whichever lower) | 3 | 1,00,000 | 150 | 25,000 |
| Semi-Urban | 5,000 | 25,000 | 6% of shortfall or ₹500 (whichever lower) | 3 | 1,00,000 | 150 | 25,000 |
| Rural | 2,500 | 10,000 | 6% of shortfall or ₹500 (whichever lower) | 3 | 1,00,000 | 150 | 25,000 |
Penalties You Should Know
If your account balance dips below the new thresholds, ICICI will charge a penalty of 6% on the shortfall or ₹500, whichever is less. This is one of the toughest penalty frameworks in the Indian banking arena, especially compared to banks like State Bank of India that scrapped minimum balance penalties years ago.
Added fee changes include:
- Three free cash deposits or withdrawals monthly, after which ₹150 per transaction applies
- Free cash transactions capped at ₹1 lakh/month; beyond that, fees kick in
- Third-party cash transactions limited to ₹25,000 per transaction
Why This Matters: A Shift to Premium Clients?
Experts say ICICI is clearly aiming to attract more affluent customers by raising the bar for minimum balances. This contrasts with nationalized banks focusing on growing customer numbers by lowering or removing such requirements.
Other private banks, like HDFC and Axis, maintain lower balance requirements (around ₹10,000), which makes ICICI’s ₹50,000 MAB a stark move towards exclusivity.
What It Means for Customers
- If you can’t keep the high balance, you risk paying monthly penalties that add up fast.
- Semi-urban and rural customers face tougher balance requirements too, which may limit easy banking access for many.
- Some customers might consider switching to accounts with no minimum balance or banks with less stringent rules.
What Hasn’t Changed?
Despite these big changes, interest rates remain low (around 2.5% per annum), and ICICI continues offering basic perks such as free IMPS transactions and cheque books to new account holders.
This increase in minimum balance is a major move that could reshape how many Indians manage their money. ICICI Bank appears to be betting on premium customers while others compete for mass-market clients. If you’re opening a new savings account, be prepared for these higher balance expectations to avoid surprise fees.
Minimum Balance Requirements Across Major Indian Banks (2025)
Here is a simple comparison of minimum balance requirements and penalties across major Indian banks for new savings accounts, including ICICI Bank’s recent steep hike:
| Bank Name | Metro/Urban (₹) | Semi-Urban (₹) | Rural (₹) | Penalty Structure |
|---|---|---|---|---|
| ICICI Bank (New Accounts from Aug 1, 2025) | 50,000 | 25,000 | 10,000 | 6% of shortfall or ₹500 (whichever lower) |
| ICICI Bank (Existing Accounts) | 10,000 | 5,000 | 2,500 | ₹100 + Service Tax |
| HDFC Bank | 10,000 | 5,000 | 2,500 | ₹600 penalty + Service Tax |
| Axis Bank | 10,000 | 5,000 | 2,500 | ₹750 penalty + Service Tax |
| State Bank of India (SBI) | 3,000 | 1,000 | 500 | No penalty charged since 2020 |
| Punjab National Bank (PNB) | 1,000 | 500 | 250 | No penalty charged |
| Bank of Baroda | 1,500 | 1,000 | 500 | ₹50-200 based on shortfall |
| Yes Bank | 10,000 | 5,000 | 2,500 | ₹500 + Service Tax |
| Kotak Mahindra Bank | 10,000 | 5,000 | 2,500 | ₹600 penalty + Service Tax |
| Indian Bank | 1,000 | 500 | 250 | ₹50 + GST |
| Canara Bank | 1,000 | 500 | 250 | ₹25-100 based on shortfall |
| Union Bank of India | 1,000 | 500 | 250 | ₹50 + GST |
Key Takeaways
- ICICI Bank’s new minimum balance for metro/urban accounts is 5 times higher than other private banks.
- Public sector banks like SBI have removed minimum balance requirements, making ICICI’s hike stand out sharply.
- Penalties at ICICI are among the steepest, posing a risk of significant monthly fees for those unable to maintain high balances.
- Semi-urban and rural customers will also face much higher balances and penalties with ICICI than with most other banks.
