Minimum Savings Account Balance Hiked To Rs 50,000; Check Penalties For Non-Compliance

Mumbai: Savings bank accounts pay very little interest, we are all accustomed to it. But when minimum balance requirement goes up substantially, it is bound to pinch customers, especially those in middle and lower income groups.

ICICI Bank, India’s second-largest private lender, has announced a sharp increase in the minimum monthly average balance (MAB) requirement for its savings accounts, effective August 1, 2025.

The change, which sets a new benchmark for highest MAB requirement among domestic banks, applies to all new accounts opened after August 1.

Customers in metro and urban branches will have to maintain a minimum average balance of Rs 50,000 — a steep jump from the existing Rs 10,000. In semi-urban areas, the MAB will be up from Rs 5,000 to Rs 25,000.

For rural branches, the minimum balance amount has been hiked from Rs 2,500 to Rs 10,000.

Rural accounts will require Rs 10,000, up from Rs 2,500.

If minimum balance is not maintained as per the new requirement, a penalty of 6% of the shortfall or Rs 500, whichever is lower, will be imposed.

For example, a shortfall of Rs 10,000 in a metro branch would ordinarily result in a Rs 600 penalty, but under the new rules, the fee is capped at Rs 500.

Other changes

ICICI Bank has also revised its cash transaction rules. Customers can henceforth avail of three free cash deposit transactions per month, up to a cumulative value of Rs 1 lakh. Beyond this, charges of Rs 150 per transaction or Rs 3.50 per Rs 1,000 deposited (whichever is higher) will apply.

If both the transaction count and value limits are breached, the higher of the two applicable charges will be levied.

Third-party cash deposits will be capped at Rs 25,000 per transaction.

For ECS/NACH debit returns due to insufficient funds or other financial reasons, the bank will levy a charge of Rs 500 per instance, limited to a maximum of three charges per month for the same mandate.

For outward cheque returns (cheques deposited by the customer), a fee of Rs 200 per instance will be charged if the cheque is returned due to financial reasons. As for inward cheque returns (cheques issued by the customer), the bank will levy Rs 500 per instance for financial reasons and Rs 50 per instance for non-financial reasons, excluding cases related to signature verification.