ICICI Bank Increases Minimum Deposit Threshold for New Customers from Rs 10,000 to Rs 50,000
As of August 2025, ICICI Bank has revised the minimum average balance (MAB) requirements for new savings accounts, marking a significant increase over the pre-August levels. The new MAB requirements, effective from August 1, vary depending on the location of the branch.
New Minimum Average Balance Requirements
- Metro and Urban branches: Rs 15,000
- Semi-Urban branches: Rs 7,500
- Rural branches: Rs 2,500
These revised requirements apply only to savings accounts opened on or after August 1, 2025. Accounts opened before that date follow the old MAB norms.
Penalty for Non-Compliance
If the minimum average balance is not maintained, customers will be charged a penalty equal to 6% of the shortfall or Rs 500, whichever is lower. Certain accounts, such as salary accounts, PM Jan Dhan Yojana accounts, and basic savings bank deposit accounts, remain exempt and enjoy zero balance facilities.
Other Key Changes
- The bank now allows three complementary cash deposits free of cost into your savings account. After the third deposit, each additional transaction will cost Rs 150.
- The cumulative value limit for cash deposits into ICICI Bank savings accounts is Rs 1 lakh per month.
- New customers in semi-urban locations will be required to maintain a minimum average balance of Rs 25,000.
Comparison with Other Banks
It's worth noting that most other banks maintain significantly lower thresholds for minimum average balance, typically between Rs 2,000 and Rs 10,000. In contrast, ICICI Bank's new requirements represent a substantial increase.
Interest Rate Reduction
In a separate move, ICICI Bank has also reduced the interest rate on savings accounts with deposits up to Rs 50 lakh by 0.25 per cent. The new rate is 2.75 per cent.
This revised MAB requirement by ICICI Bank is in contrast to other banks, such as State Bank of India (SBI), which scrapped the minimum balance rule in 2020.
| Branch Location | Minimum Average Balance (MAB) for New Accounts (Aug 2025 onward) | Previous MAB (before Aug 1, 2025) | |-----------------|-----------------------------------------------------------|----------------------------------| | Metro/Urban | Rs 15,000 | Rs 10,000 | | Semi-Urban | Rs 7,500 | Rs 5,000 | | Rural | Rs 2,500 | Rs 2,000 |
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- A comparison between ICICI Bank's new MAB requirements and those of other banks in the finance industry reveals that ICICI Bank has set significantly higher minimum average balance requirements for new savings accounts, with metro and urban branches requiring Rs 15,000, semi-urban branches requiring Rs 7,500, and rural branches requiring Rs 2,500, while most other banks maintain lower thresholds, typically between Rs 2,000 and Rs 10,000.
- The new MAB requirements implemented by ICICI Bank in the banking-and-insurance sector, such as the increases in minimum average balance requirements for new savings accounts in metro and urban branches, semi-urban branches, rural branches, and additional changes like interest rate reductions, are part of a broader industry trend to adjust account management practices to adapt to changing business needs.
