Mumbai: ICICI Bank has taken a step back on its earlier decision to increase the minimum average balance (MAB) required in new savings accounts. The bank had recently raised the MAB from Rs 10,000 to Rs 50,000 for new accounts opened on or after August 1. However, after receiving many complaints and feedback from customers, ICICI has now reduced the amount to Rs 15,000.
New Balance Rules Explained
The revised minimum balance for new savings accounts is now Rs 15,000 in regular branches, Rs 7,500 in semi-urban areas, and Rs 2,500 in rural branches. These changes are still higher than the old amounts before August 1. For example, earlier, the MAB in semi-urban and rural areas was Rs 5,000, but even after the cut, it has gone up by 50%.
Who Is Not Affected by This Rule
ICICI Bank also clarified that these new rules do not apply to all account holders. If you opened your savings account before July 31, 2025, you do not have to worry about the new MAB. Also, the rules do not apply to salary accounts, senior citizens and pensioners (above 60 years), people with special needs, and those who have basic savings accounts or accounts under the Pradhan Mantri Jan Dhan Yojana.
What Happens If You Don't Maintain Balance
If customers fail to maintain the required average balance, they will need to pay a penalty. This penalty will be 6% of the shortfall in the balance or Rs 500—whichever is less.
What Customers Get in Return
The money kept in the ICICI savings account earns an interest of 2.5% per year. However, many feel that this interest rate is low, especially when the minimum balance required is so high.
Public Sector Banks Doing the Opposite
Interestingly, while ICICI Bank is increasing its MAB amounts (though lower than its earlier hike), public sector banks are moving in the opposite direction. Banks like State Bank of India, Punjab National Bank, Canara Bank, and Indian Bank have either reduced or completely removed their penalty charges for not maintaining minimum balance. This is part of a larger push to make banking more accessible to everyone.
