ICICI Bank has increased the monthly Minimum Average Balance requirement for new savings accounts.
This change applies only to new accounts holder opened on or after 1st August 2025 but not the existing accounts.
New Minimum Balance Requirements (MAB)
| Location | Old MAB | New MAB |
| Metro and Urban Areas | Rs 10,000 | Rs 50,000 |
| Semi-Urban Areas | Rs 5,000 | Rs 25,000 |
| Rural Areas | Rs 2500 | Rs 10,000 |
What is Monthly Average Balance?
Monthly Average Balance is calculated by adding the daily closing balances in your saving account for the month and dividing by the number of days.
For Example
If you live in metro city and you have:
- Day 1-10: Rs 60,000
- Day 11-20: Rs 50,000
- Day 21-30: Rs 40,000
Then your monthly average will be (Rs 60,000*10 + Rs 50,000*10 + Rs 40,000*10) = Rs 1,50,000/30 = Rs 50,000.
Penalty Structure for not Maintaining the Balance
- If the average balance is less than the required minimum, a penalty equal will be imposed 6% of the shortfall amount or
- Maximum penalty Rs 500.
For example,
Required MAB = Rs 50,000
Your Average Balance = Rs 35,000
If the shortfall is Rs 15,000, the penalty will be (Rs.15,000 of 6%) Rs.900, but the bank will charges only Rs.500.
If the shortfall is only Rs 5,000, the penalty will be Rs.300.
Comparison with Other Banks
| Bank | MAB Requirement | Maximum Penalty Charges |
| ICICI Bank | Up to Rs 50,000 | Rs 500 |
| HDFC Bank | Rs 1,000 | Rs 600 |
| Axis Bank | Rs 12,000 | Rs 500 |
| SBI | Rs 3,000 (Urban) | Rs 10-15 (varies) |
| Kotak | No minimum balance | No penalty |
Now, ICICI Bank's Minimum Average Balance (MAB) is the highest among major Indian Banks for regular savings accounts in metro cities.
Reasons Behind ICICI Bank's To Increase MAB
- To increase low-cost deposits as banks pay low interest on savings.
- To target high value customers to keep higher balances, benefiting the bank financially.
- To focus on premium customers by possibly filtering out low-balance holdeRs
- To increased operational and inflation-related costs for banks.
- Premium private banks sometimes raise MAB to project exclusivity.
Impact on Customers
- Existing customers are unaffected.
- New customers, especially students, early-career employees, gig workers in metro cities with low income, may find it difficult to maintain higher minimum balances.
- It could lead customers to shift to others banks those are offering zero-balance accounts.
- Liquidity for small businesses and individuals relying on daily funds could reduce.
ICICI Bank's Market Position
- ICICI is the third largest private bank by market capitalization (Rs 7-8 lakh crore).
- It leads in CASA (current and savings account) ratio, indicating a high proportion of low-cost deposits, an important financial metric for banks.
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