ICICI Bank cuts minimum balance for  urban savings accounts to Rs 15,000 from Rs 50,000

ICICI Bank has lowered the minimum monthly average balance (MAB) requirement for new savings accounts in metro and urban areas to Rs 15,000. The revision, effective for accounts opened on or after August 1, 2025, comes in response to customer feedback. Under the revised structure, customers in semi-urban locations will need to maintain an MAB of Rs 7,500, while rural account holders will have a much lower requirement of ₹2,500. Certain groups, including pensioners below 60 years and students from 1,200 select institutions, are exempt from maintaining any minimum balance.

The new rules do not apply to salary accounts, senior citizens’ accounts, basic savings bank deposit accounts, or accounts for persons with special needs. Accounts opened before July 31, 2025, will continue under the previous terms. 

If the required MAB is not maintained, the bank will levy a fee of 6% of the shortfall or Rs 500, whichever is lower. Customers in premium programmes such as Select Banking, Wealth Management, or Private Banking can avoid these charges if they meet their respective eligibility conditions.

“We had introduced new requirements for the Monthly Average Balance for new savings accounts opened from August 1, 2025. Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences,” ICICI Bank said.

The Minimum Average Balance (MAB) is calculated as the simple average of day-end balances for a calendar month. Earlier for savings accounts opened on or after August 1, 2025, ICICI Bank had revised MAB requirements based on branch location. Customers in metro and urban branches were asked to maintain an MAB of Rs 50,000, those in semi-urban branches Rs 25,000, and rural branch account holders Rs 10,000 (up from ₹5,000 previously).

It was mentioned that if the required MAB is not maintained, a penalty of 6% of the shortfall or Rs 500 (whichever is lower) will apply. Accounts opened before August 1, 2025, will continue with the old MAB requirement of Rs 10,000.

Charges on other services

The bank has also set limits on transactions. Customers can make up to five free ATM withdrawals at non-ICICI ATMs each month (maximum three in metro cities). Branch cash transactions are free for up to three transactions or ₹1 lakh per month. Fees apply for services like cheque returns and debit card replacements.

1. Cash Deposits (Branches & Cash Recycler Machines)

Customers get 3 complimentary cash deposits per month; subsequent deposits are charged Rs 150 each.

Complimentary value limit: Rs 1 lakh per month. Beyond this, charges are Rs 3.5 per Rs 1,000 or Rs 150, whichever is higher.

If both number and value limits are exceeded in a single transaction, the higher charge applies.

Third-party cash deposit limit: Rs 25,000 per transaction for all savings accounts.

2. Cash Withdrawals (Branches)

3 free withdrawals per month, after which Rs 150 per transaction applies.

Complimentary value limit: Rs 1 lakh per month; beyond this, charges are Rs 3.5 per Rs 1,000 or ₹150, whichever is higher.

If both limits are exceeded in a single transaction, the higher charge applies.

Third-party cash withdrawal limit: ₹25,000 per transaction for all savings accounts.

3. ATM Transactions (Non-ICICI ATMs)

Six metro cities (Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad):

Rs 23 per financial transaction and ₹8.5 per non-financial transaction after 3 free transactions per month (financial + non-financial combined).

Other locations:

Rs 23 per financial transaction and ₹8.5 per non-financial transaction after 5 free transactions per month.

Max free transactions per month: 5, with a cap of 3 at the six metro locations.

International ATM withdrawals: ₹125 per transaction + 3.5% currency conversion fee; non-financial transactions charged ₹25 each.