ICICI Bank Increases Minimum Balance Requirements and Service Charges
Thank you for reading this post, don't forget to subscribe!Effective August 1, 2025, ICICI Bank has updated its minimum average balance (MAB) requirements and service charges for new savings accounts.
Higher Minimum Balance for New Accounts
The new MAB requirements apply to accounts opened on or after this date, and the amounts vary by location:
- Metro and Urban branches: The MAB has increased to ₹50,000, a significant jump from the previous ₹10,000.
- Semi-urban branches: The new requirement is ₹25,000, up from ₹5,000.
- Rural branches: The MAB has doubled to ₹10,000, compared to the previous ₹5,000.
Existing account holders will not be affected by these changes.
Updated Service Charges
The bank has also revised its fees for several transactions.
Cash Deposits and Withdrawals
Customers get three free cash transactions (deposits or withdrawals) per month at branches and cash recycler machines. After that, each transaction costs ₹150. Additionally, the first ₹1 lakh of cash transactions per month is free. Beyond this limit, a fee of ₹3.5 per ₹1,000 or ₹150 (whichever is higher) will be charged. Third-party transactions are capped at ₹25,000 per transaction.
Cash Deposits During Non-Business Hours
Deposits made at cash recycler machines between 4:30 p.m. and 9:00 a.m. or on holidays will incur a ₹50 fee per transaction if monthly deposits exceed ₹10,000.
ATM Transactions
For non-ICICI Bank ATMs in six major metro cities (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad), the first three transactions each month are free. After that, financial transactions will cost ₹23, while non-financial transactions will be ₹8.5.
Public Reaction
The changes have been met with criticism. Kotak Mahindra Bank executive Jay Kotak noted that the new ₹50,000 minimum balance is a large sum for most Indians, as 90% of the population earns less than ₹25,000 a month. He suggested that such high requirements could exclude a majority of the population and that a “digital-first” approach is necessary for banks to serve all Indians.
