In a significant policy change, ICICI Bank has sharply increased the minimum average balance (MAB) requirement for savings accounts across all branches. The move impacts customers nationwide, with steep hikes for metro, urban, semi-urban, and rural account holders.
According to ANI reports, the MAB for metro and urban customers has risen from ₹10,000 to ₹50,000. In semi-urban areas, the requirement has jumped from ₹5,000 to ₹25,000, while in rural regions, it has increased from ₹2,500 to ₹10,000.
Impact on Customers
Account holders who fail to maintain the revised MAB will face penalties. ICICI Bank will charge 6% of the shortfall or ₹500 (whichever is lower) as a non-maintenance fee. However, these charges will be waived if customers meet the criteria of their enrolled program.
The change could prompt some customers—particularly in semi-urban and rural areas—to reconsider their banking options, potentially moving to banks with lower balance requirements or opting for basic savings accounts that have no minimum balance rules.
Family Banking Rules
For customers under family banking programs, members must collectively maintain 1.5 times the specified MAB for the program. If this target is not met, non-maintenance charges will be applied to individual members. The only exception to this rule is for pensioners.
Other Charges
In addition, ICICI Bank will levy a ₹500 fee per instance for ECS/NACH debit returns due to insufficient funds, with a maximum of three such charges per month for the same mandate.
Summary of New Minimum Average Balance
| Location | Old MAB | New MAB |
|---|---|---|
| Metro/Urban | ₹10,000 | ₹50,000 |
| Semi-Urban | ₹5,000 | ₹25,000 |
| Rural | ₹2,500 | ₹10,000 |
This revision marks one of the steepest MAB hikes in recent years, and customers are advised to review their account type and usage to avoid unnecessary penalties.