ICICI Bank Minimum Balance Rules: Updated FAQs, Charges, and Key Details

Since 1 August 2025, ICICI Bank’s new balance policy has raised the minimum average balance for new savings accounts. 

Customers of ICICI Bank, one of India’s biggest private banks, will soon need to keep more money in their accounts to avoid penalties. A report in Economic Times dated 11 August 2025 revealed that ICICI Bank will raise its minimum average balance (MAB) for new accounts from 1 August 2025. This comes as the bank realigns its savings account structure, affecting customers in metro, semi-urban, and rural regions differently.

As confirmed in India Today’s coverage, the new MAB levels will require metro and urban customers to keep ₹50,000 in their accounts, up from the earlier ₹10,000. The hike is the largest for any private sector bank in recent years and has led to sharp reactions among industry voices.

Why Is ICICI Bank Changing Minimum Balance Rules?

According to reports in Economic Times (11 August 2025) and India Today, the bank has increased the minimum average balance (MAB) for new savings accounts to match its new account structure.

For metro and urban customers, the ICICI Bank minimum balance requirement will now be ₹50,000, up from ₹10,000 earlier. The change is important because, as per data in Economic Times, 90% of Indians earn less than ₹25,000 per month. For many working families, keeping ₹50,000 in a savings account will be difficult.

Bank experts say this step will likely push customers with low balances toward public sector banks, while ICICI Bank will focus more on high-balance customers.

ICICI Bank Savings Account Rules – New MAB Structure

The new ICICI Bank savings account rules have different MAB amounts based on branch location. If the balance goes below the required MAB, the penalty will be 6% of the shortfall or ₹500, whichever is lower.
 

This means if you open a new account after 1 August 2025 and do not keep the required minimum balance, you will pay a penalty every month.

Changes in ICICI Bank Transaction Rules

Alongside the MAB hike, ICICI Bank has revised its cash and ATM transaction charges. India Today’s report explained that cash transactions at branches or through cash recycler machines will be free only for the first three per month, up to ₹1 lakh in total value. 

After that, customers will be charged ₹150 per transaction or ₹3.5 per ₹1,000, whichever is higher.
 

Under the ICICI Bank new balance policy, customers in metro cities can only make 3 free financial transactions per month at other banks’ ATMs. In other cities, they can make 5 such transactions free. At ICICI Bank’s own ATMs, the first 5 withdrawals are free.

This will increase costs for customers who make many ATM withdrawals each month, especially in metros.

Card And Statement Costs

Debit card fees and statement charges are also part of the updated structure. Annual debit card fees stand at ₹300 for most customers and ₹150 for rural accounts. Replacement cards cost ₹300. Printed statements at branches or through phone banking cost ₹100, while statements via ATM, mobile app, or net banking remain free.
 

This revised cost list highlights the bank’s intent to promote paperless banking and maintain a fee-based revenue stream for physical services.

Public Response to the New Balance Policy

The change has received a lot of criticism. Businessman Jay Kotak said that since 90% of Indians earn less than ₹25,000 per month, the ₹50,000 ICICI Bank minimum balance requirement will hurt the middle class.

Many believe it will reduce financial inclusion, as lower-income customers may avoid formal banking if they cannot meet the MAB.

Banking experts believe this change is not only about increasing balances but also about focusing on profitable customers.

The ICICI Bank new balance policy will likely reduce the number of small-balance accounts in metro areas. The bank may then have a smaller but more profitable customer base.

Conclusion 

The ICICI Bank minimum balance requirement change is a major update to the ICICI Bank savings account rules. From August 2025, new account holders will need to keep much higher balances to avoid ICICI Bank minimum balance charges.

The ICICI Bank new balance policy also changes transaction and card fees, making cash transactions and branch services more expensive. Customers are being encouraged to use digital banking to save money on fees.

While ICICI Bank aims to focus on higher-value customers, the move could push lower-income customers toward public sector banks. The change could also influence other private banks to review their own MAB rules.

For customers, the choice will be simple: keep the higher balance, change how you use your account, or move to a bank with a lower minimum balance requirement.
 

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