ICICI Bank Hikes Minimum Monthly Balance to ₹50,000 in Metro Accounts: Penalty List & Details (August 2025)
"ICICI Bank" has sharply raised its minimum monthly balance requirement for new savings accounts in metros to ₹50,000, effective August 1, 2025. Find out the penalty rates for non-compliance, who the new rules affect, and how this move compares with other Indian banks.
ICICI Bank’s Steep Minimum Balance Hike Explained
Overview of the Change
ICICI Bank, one of India’s top private lenders, has announced a dramatic increase in its minimum average monthly balance (MAB) requirement for new savings accounts, effective August 1, 2025.
Metro/Urban accounts: Minimum balance now ₹50,000 (up from ₹10,000).
Semi-urban: Raised to ₹25,000 (previously ₹5,000).
Rural: Now ₹10,000 (was ₹2,500).
Applies only to new accounts opened from August 1, 2025; existing accounts continue with their prior thresholds.
This marks a fivefold increase, making ICICI Bank’s minimum balance requirement the highest among major Indian banks.
Who Is Affected?
New Savings Account Holders (opened after August 1, 2025)
Metro, urban, semi-urban, and rural branches have revised, location-based requirements.
Existing customers are not impacted; their earlier minimum balance thresholds remain unchanged.
Penalty Rates for Non-Compliance
Not meeting the required monthly average balance will result in penalties:
Penalty Amount: 6% of the shortfall or ₹500—whichever is less.
Example: If your deficit is ₹10,000, the penalty would be ₹600 (6%), but since ₹500 is lower, you’ll pay ₹500.
Pensioners and salary accounts are typically exempt from these hikes and penalties.
Comparison: ICICI Bank vs Other Banks
| Bank | Metro Minimum Balance | Penalty Policy |
|---|---|---|
| ICICI Bank | ₹50,000 | 6% of shortfall or ₹500 (lower) |
| HDFC/Axis/IndusInd | ₹10,000 | Lower penalties |
| SBI, Public Banks | Zero balance | No penalties for non-compliance |
Most public sector banks in India like SBI, Canara Bank, and Bank of Baroda have waived minimum balance requirements altogether, signaling a shift toward greater financial inclusion. In contrast, private banks like ICICI are targeting more affluent, urban customers with higher service thresholds.
Why Is ICICI Bank Making This Change?
Banking analysts suggest this hike is a strategic move:
Attracts high-value, affluent customers.
Signals a focus on wealth management and premium segment.
Compares itself to international banking standards.
Meanwhile, the competition for mass-market customers is being strengthened by public sector banks with zero-balance accounts.
ICICI Bank: Other Fee Changes to Know
Cash transactions: Three free cash deposits/withdrawals per month; thereafter, ₹150 per transaction.
Monthly cash value limit up to ₹1 lakh: Free; beyond, ₹3.50 per ₹1,000 or ₹150—whichever is higher.
Third-party cash deposits: Capped at ₹25,000 per transaction.
Customer Impact and Practical Tips
Urban and metro customers with regular savings accounts must now set aside a significantly larger sum.
Those unable to maintain high balances could risk recurring penalties, impacting financial planning.
Before opening any new ICICI Bank account, carefully review the minimum balance and penalty structure.
Consider comparing other banks’ requirements if maintaining ₹50,000 monthly is difficult.
Frequently Asked Questions
1. Does the new minimum balance apply to all account types?
No, it applies to new regular savings accounts only. Existing customers retain the previous limits; salary and pension accounts are exempt.
2. When will the penalty be charged?
At the end of every month if your average balance is below the required threshold.
3. Are public sector banks affected?
No, leading public banks have largely done away with minimum balance requirements.