ICICI Bank Increases Minimum Balance to Rs 50,000
ICICI Bank, India’s second-largest private lender, has announced a substantial increase in the minimum monthly average balance (MAB) for accounts in metro and urban areas. Starting August 2025, the MAB will jump from Rs 10,000 to Rs 50,000. This steep hike has raised eyebrows, especially since many customers may find it challenging to maintain such a high balance.
The changes also extend to semi-urban and rural branches. For semi-urban locations, the MAB will now be Rs 25,000, up from Rs 5,000, while rural branches will require a minimum balance of Rs 10,000, compared to the previous Rs 2,500. This move is significant as it affects a large number of account holders across different regions.
Maintaining the MAB is crucial for customers, as failing to do so will incur a penalty. ICICI Bank has stated that if customers do not meet the minimum balance requirement, they will face a charge of 6 percent of the shortfall or Rs 500, whichever is lower. This penalty structure aims to encourage customers to keep their accounts funded adequately.
The decision by ICICI Bank comes at a time when many public sector banks (PSBs) have opted to waive penalties on non-maintenance of MAB. In a recent report, the finance ministry revealed that PSBs collected nearly Rs 9,000 crore in penalties over five years from customers failing to maintain their MAB. This creates a contrast between the practices of private and public banks.
Additionally, ICICI Bank has updated its cash transaction rules. Customers will enjoy three complimentary cash transactions per month, with a limit of Rs 1 lakh. After this, a fee of Rs 150 per transaction will be applied. The bank also imposes a third-party cash deposit limit of Rs 25,000 per transaction for all savings accounts, along with charges for returned cheques.
Overall, the significant MAB hike by ICICI Bank poses new challenges for customers, especially those who may struggle with the increased financial burden. As banking practices evolve, consumers must stay informed about these changes to avoid penalties and manage their finances effectively.
