.jpg)
ICICI
Bank, India’s second-largest private sector lender, has announced a significant
hike in the minimum monthly average balance (MAB) requirement for new
savings accounts, effective August 1, 2025. The revision sets the
highest MAB benchmark among domestic banks and has sparked widespread debate
among customers.
Under the
new rules, accounts opened on or after August 1 will require:
- ₹50,000 MAB in metro and urban branches
(up from ₹10,000)
- ₹25,000 MAB in semi-urban branches (up
from ₹5,000)
- ₹10,000 MAB in rural branches (up from
₹2,500)
The MAB is
calculated as the average of day-end balances in a calendar month. Existing
customers will continue with the earlier limits — ₹10,000 in metro/urban
branches and ₹5,000 in semi-urban/rural branches.
Penalties
for Shortfall
Customers failing to maintain the required MAB will face a penalty of 6% of
the shortfall or ₹500, whichever is lower. For example, a ₹10,000 shortfall
in a metro account would typically incur ₹600 in charges, but under the cap,
the fee will be limited to ₹500.
Revised
Cash Transaction Rules
ICICI Bank has also updated its cash deposit and withdrawal policy. Customers
will now be allowed three free cash transactions per month across
branches and Cash Recycler Machines. After that, a fee of ₹150 per
transaction will apply. Third-party cash deposits are capped at ₹25,000
per transaction.
Other
Updated Charges
- ECS/NACH debit returns (due to insufficient funds):
₹500 per instance, capped at three per month per mandate.
- Outward cheque returns: ₹200 per instance (financial
reasons).
- Inward cheque returns: ₹500 (financial reasons) and
₹50 (non-financial reasons).
- Declined ATM/POS transactions due to insufficient balance
at another bank: ₹25 per instance.
Customer
Reactions
The steep hike has triggered strong criticism on social media, with many
calling the move “elitist” and urging the Reserve Bank of India (RBI) to
intervene. Some accused the bank of “filtering customers” based on wealth,
while others indicated plans to close their ICICI Bank accounts in favor of
institutions with lower MAB requirements or basic zero-balance savings
accounts.
Why
Banks Impose MAB Requirements
Banks generally maintain MAB thresholds to cover operational costs and fund
investments. Customers who fail to meet these thresholds are charged penalties
to offset service expenses.
While
ICICI Bank maintains that these measures are in line with its account structure
and service commitments, the policy shift marks a decisive change in savings
account economics — one that could influence customer loyalty and reshape
competition in the Indian banking sector.
0 Comments