New Delhi, August 9, 2025 — ICICI Bank has sharply raised the minimum average balance requirement for savings accounts across all categories of branches, with the revised norms taking effect from August 1, 2025. The change marks one of the steepest hikes in recent years for a major private lender, potentially affecting millions of account holders nationwide.
In metro and urban branches, the minimum average balance has surged to ₹50,000, a fivefold increase from the earlier ₹10,000 threshold. Semi-urban customers will now have to maintain ₹25,000, up from ₹5,000, while those banking in rural branches face a new requirement of ₹10,000, compared to the previous ₹2,500.
The substantial hike is expected to hit rural and semi-urban customers the hardest, particularly low-income account holders, who may struggle to maintain the higher balances. Analysts suggest this move could lead customers to explore alternatives such as zero-balance or basic savings accounts, or even shift to banks with more lenient requirements.
ICICI Bank has clarified that customers falling short of the required monthly average balance (MAB) will be charged either six percent of the shortfall or ₹500, whichever is lower. These charges will be waived for customers meeting the criteria of specific enrolled programs. Pensioners are fully exempt from these penalties.
Under the bank’s Family Banking program, the combined balance of all members must be at least 1.5 times the prescribed MAB; otherwise, charges will be applied individually to members who fail to meet their own requirement.
The bank has also revised several transaction-related charges. ECS/NACH debit returns for financial reasons will now incur a fee of ₹500 per instance, capped at three charges per month for the same mandate. Outward cheque returns for financial reasons will cost ₹200 per instance, while inward cheque returns will draw a ₹500 fee for financial reasons and ₹50 for non-financial reasons, excluding signature mismatch cases. Additionally, declined transactions at other banks’ ATMs or POS terminals due to insufficient funds will now attract a fee of ₹25 per instance.
