With effect from August 1, 2025, ICICI Bank, the second-largest private lender in India, has announced a significant rise in the minimum monthly average balance (MAB) requirement for its savings accounts. All new accounts opened after that date are affected by the change, which establishes a new industry standard for the highest MAB requirement among domestic banks. Customers at metro and urban branches are required to maintain a minimum average balance of Rs 50,000 under the amended structure, which is a significant increase from the present Rs 10,000. The MAB would increase from Rs 5,000 to Rs 25,000 in semi-urban regions and from Rs 2,500 to Rs 10,000 in rural areas. A penalty of Rs 500 or 6% of the statutory MAB deficiency, whichever is less, would be assessed by ICICI Bank. In a metro branch, for instance, a Rs 10,000 shortage would often result in a Rs 600 penalty; however, the new regulations set the price at Rs 500. Additionally, the bank updated its guidelines for cash transactions. Consumers would be eligible for three complimentary cash deposit transactions each month, with a maximum total of Rs 1 lakh. In addition, there will be fees of Rs. 150 for each transaction or Rs. 3.50 for every 1,000 rupees deposited, whichever is more. The highest of the two applicable charges will be applied if the transaction count and value restrictions are both violated at the same time. The maximum amount for third-party cash deposits would be Rs 25,000 per transaction. For financial considerations, check return fees have been fixed at Rs 200 for outbound returns (customer-deposited checks) and Rs 500 for inbound returns (customer-issued checks).
The increase sets ICICI Bank apart from its competitors. For metro and urban branches, HDFC Bank’s MAB requirement is still Rs 10,000; for semi-urban branches, it is Rs 5,000; and for rural branches, it is Rs 2,500. In 2020, the State Bank of India, the country’s biggest lender, did away with its minimum balance requirement. The MAB criteria of the majority of other banks remain within the range of Rs 2,000 to Rs 10,000. Targeting high-net-worth and mass-affluent clients who are more likely to buy extra financial products like insurance, investments, and brokerage services, banking observers believe the move demonstrates ICICI’s obvious push toward premiumization.
While current ICICI clients are unaffected, other lenders may follow suit as banks vie for affluent savers in the face of India’s expanding GDP and unequal wealth distribution. Private equity, mutual funds, and portfolio management companies are already fiercely competing with banks for the business of wealthy customers. RBI guidelines require Basic Savings Bank Deposit Accounts (BSBDAs), including those opened under the Pradhan Mantri Jan Dhan Yojana, to have no minimum balance requirement in order to guarantee basic banking access. However, these accounts lack the functionality of standard savings accounts and have transaction limits.
