Brace yourselves—ICICI Bank has just dropped a bombshell that’s echoing across household budgets. Starting August 1, 2025, the minimum monthly average balance (MAB) for new savings accounts has jumped from ₹10,000 to ₹50,000 in metro and urban branches. That’s a fivefold leap overnight.
Here’s the breakdown—and why this matters.
The Numbers That Will Make You Do a Double-Take
- Metro & Urban: ₹50,000 (was ₹10,000)
- Semi-Urban: ₹25,000 (was ₹5,000)
- Rural: ₹10,000 (was ₹2,500–₹5,000 earlier)
Yes, ₹50,000. This applies only to accounts opened on or after August 1, 2025. Existing customers will continue under the old rules.
Penalties That Sting—but Won’t Bankrupt
Fail to maintain the new minimum balance, and you’ll face either 6% of the shortfall or a flat ₹500 penalty—whichever is less. While ₹500 might not sound earth-shattering, repeat offences could burn a hole in your wallet faster than you think.
Who’s Safe and Who’s Hit
Certain groups are exempt—like pensioners, basic bank account holders, and those under the Family Banking program. But if you’re an average urban saver opening a fresh savings account now—you’re in the firing line.
Public Reaction: From Shock to Sarcasm
Social media hasn’t been this united in outrage for a while. Many are calling it “elitist” and accusing the bank of turning savings accounts into a luxury item. Some even say it’s a blow to the middle class, especially when public banks are removing minimum balance rules altogether.
Is It Justifiable or Out of Touch?
Supporters of the move call it a strategic business decision. According to this logic, higher MAB requirements will attract high-value customers and reduce operational costs. Critics argue that it’s tone-deaf, especially when average monthly incomes in India barely allow for such balances.
What This Means for You: Smart Workarounds
If your account is affected, here’s how you can dodge the penalty:
- Salary Parking Strategy: Keep enough for the MAB, then move the excess into a fixed deposit or investment.
- Sweep-In Facility: Link a fixed deposit to your account so the MAB is met without freezing your funds.
- Switch Accounts: Zero-balance accounts like Jan Dhan are still alive and kicking—perfect for those unwilling to play the ₹50K game.
Quick Facts Table
| Category | Requirement (New Customers) |
|---|---|
| Metro/Urban | ₹50,000 MAB |
| Semi-Urban | ₹25,000 MAB |
| Rural | ₹10,000 MAB |
| Penalty | 6% of shortfall or ₹500 |
| Exemptions | Pensioners, Jan Dhan, Family Banking |
Final Word
This isn’t just a policy change—it’s a big signal about where ICICI Bank wants to position itself. While it might suit the bank’s business strategy, for many potential customers, it could mean looking elsewhere.
If you’re opening a new account, read the fine print. And if you’re an existing customer, breathe easy—for now. Your ₹10K benchmark still stands… until it doesn’t.
