ICICI Bank has revised its minimum balance requirements for new savings accounts following public criticism. Effective August 1, 2025, the minimum monthly average balance (MAB) for new accounts in metro and urban areas has been reduced to Rs 15,000. This decision reverses an earlier increase to Rs 50,000, which had sparked outrage among customers.

The revised MAB requirements also take into account the location of the account. For semi-urban locations, the MAB is now Rs 7,500, while for rural areas, it is Rs 2,500. These changes are applicable to accounts opened on or after August 1, 2025. Accounts opened before July 31, 2025, will continue to operate under the previous terms.

Certain categories of account holders are exempt from the minimum balance requirement. Pensioners below 60 years of age and students from 1,200 selected institutions do not need to maintain a minimum balance. Additionally, salary accounts, senior citizens' accounts, basic savings bank deposit accounts, and accounts for people with special needs are also excluded from the new rules.

If customers fail to maintain the required MAB, a penalty will be charged. The penalty is 6% of the shortfall in the required MAB or Rs 500, whichever is lower.

This adjustment comes after ICICI Bank initially increased the minimum balance for metro and urban customers to Rs 50,000, a five-fold increase from the previous Rs 10,000. The MAB for semi-urban and rural locations had also been raised to Rs 25,000 and Rs 10,000, respectively. These changes, which took effect on August 1, 2025, were met with considerable backlash.

The bank's decision to lower the minimum balance reflects a response to customer feedback and concerns. It also aligns with the practices of other banks, some of which have eliminated minimum balance requirements altogether. For example, the State Bank of India (SBI) scrapped the minimum balance rule in 2020. Many other banks maintain lower minimum balance thresholds, typically ranging from Rs 2,000 to Rs 10,000.

In addition to the changes in minimum balance requirements, ICICI Bank has also revised other charges and interest rates. In April 2025, the bank reduced the interest rate on savings accounts to 2.75% for balances up to Rs 50 lakh. The bank allows three free cash deposits per month, with subsequent transactions costing Rs 150 each, subject to a cumulative limit of Rs 1 lakh per month. The number of free cash withdrawal transactions per month remains at three.