Higher Minimum Balance in ICICI Bank? Here’s the New August 2025 Policy

Changes to ICICI Bank's Minimum Balance Effective August 2025

With effect from August 1, 2025, ICICI Bank has revised the minimum average balance (MAB) rules for new savings accounts. Depending on whether the branch is in a metro, urban, semi-urban, or rural area, this move has varying effects on the clients.

Here is all you need to know about the updated policy, who is impacted, and how to avoid penalties if you intend to establish a new account with ICICI Bank.

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What’s Changing from August 1, 2025?

ICICI Bank will raise the minimum balance requirements for new savings accounts as of August 1, 2025:

• Metro & Urban Branches: Rs. 50,000 minimum average balance Semi-Urban Branches: Rs. 25,000 minimum average balance Rural Branches: Rs. 10,000 minimum average balance
• Metro & Urban Branches: Rs. 50,000 minimum average balance
• Semi-Urban Branches: Rs. 25,000 minimum average balance
• Rural Branches: Rs. 10,000 minimum average balance

These updated requirements apply only to new accounts opened on or after the mentioned date.

What About Existing Customers?

If you already have an ICICI Bank savings account, you can relax — your minimum balance requirement remains the same.

• For rural and semi-urban areas, the MAB remains Rs. 5,000 for existing customers.
• For metro and urban areas, existing terms continue as per your original account agreement.

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Why is ICICI Bank Increasing the Minimum Balance?

While the bank has not issued a detailed statement, financial experts suggest a few reasons:

• Higher Operational Costs: Metro and urban branches have higher running costs, and the bank is aligning balances accordingly.
• Encouraging Premium Banking: A higher balance requirement may push customers toward premium accounts with added benefits.
• Liquidity & Stability: Maintaining higher deposits helps the bank strengthen its cash reserves.

What Happens If You Don’t Maintain the Balance?

Non-maintenance fees may be incurred if the Minimum Average Balance is not maintained. These charges vary depending on the shortfall amount and the branch category.

For example:

• Falling short by 50% of the MAB could mean a penalty between Rs. 300–Rs. 600 per month.
• The higher the shortfall, the steeper the fine.

Tip: Always check your monthly balance report or use the ICICI Bank mobile app to monitor compliance.

How to Avoid Penalties

Here are a few strategies to maintain your required balance without extra stress:

• Automate Your Savings: Set up an auto-transfer from another account.
• Use Fixed Deposits: Some linked FD accounts help meet MAB requirements.
• Bundle Accounts: If you have multiple ICICI accounts, check if balances can be combined for MAB calculation.

Should You Still Open an Account in August 2025?

While the higher MAB may seem steep, ICICI Bank offers strong digital banking services, wide branch/ATM access, and premium features that might justify the requirement for certain customers.

If you live in rural or semi-urban areas, the MAB is still much lower compared to metro cities, making it more accessible.

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Final Thoughts

ICICI Bank’s updated minimum balance policy for new savings accounts from August 2025 marks a significant shift, especially for metro and urban customers. Whether you choose to open an account will depend on your banking needs, ability to maintain balances, and the perks you value.

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