ICICI Bank has announced significant changes to its minimum balance requirements and service charges, effective August 1, 2025. These revisions primarily affect new savings accounts opened on or after this date. The move has sparked considerable discussion, especially as several public sector banks have been either rationalizing or completely waiving penalties for not maintaining minimum balances.

Steeper Minimum Balance Requirements

The most notable change is the sharp increase in the minimum average balance (MAB) required for savings accounts. The revised MAB depends on the location of the branch:

• Metro and Urban Branches: The MAB has been hiked from ₹10,000 to ₹50,000.
• Semi-Urban Branches: The MAB has increased from ₹5,000 to ₹25,000.
• Rural Branches: The MAB has risen from ₹2,500 to ₹10,000.

These changes apply exclusively to new accounts opened on or after August 1, 2025. Existing account holders will continue to maintain the MAB applicable to them before this date. Certain account types, such as salary accounts, Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, and Basic Savings Bank Deposit Accounts (BSBDA), are exempt from these revised MAB requirements, as they are typically zero-balance accounts.

Penalties for Non-Maintenance

If the account balance falls below the stipulated MAB, ICICI Bank will levy a penalty. The penalty is calculated as 6% of the shortfall in the required MAB or ₹500, whichever is lower. However, these charges may be waived if the customer meets the conditions of an enrolled program. For Family Banking programs, the family must collectively maintain 1.5 times the program's eligibility amount to avoid individual MAB non-maintenance charges.

Revised Service Charges

In addition to the changes in MAB, ICICI Bank has also revised various service charges.

• Cash Transactions: Customers are entitled to three free cash deposits and withdrawals per month at branches and through Cash Recycler Machines. Beyond this limit, a charge of ₹150 per transaction will apply. A cumulative monthly value limit of ₹1 lakh is available without charges. Beyond this, a charge of ₹3.5 per ₹1,000 or ₹150, whichever is higher, will be applicable. Third-party cash deposits are capped at ₹25,000 per transaction. Deposits made via cash machines or cash recycler machines during non-working hours (4:30 pm to 9 am) and on holidays will attract ₹50 per transaction if the total deposits exceed ₹10,000 in a month.
• ATM Usage: At non-ICICI Bank ATMs in the six metro cities (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad), customers can make up to three free transactions a month. After that, each financial transaction will cost ₹23, while each non-financial transaction, like balance enquiry, will cost ₹8.5. In other cities, up to five free transactions are allowed before the same charges apply. International ATM withdrawals will attract a fee of ₹125 per transaction, plus a 3.5% currency conversion charge. At ICICI Bank's own ATMs, cash withdrawals are free for the first five transactions in a month, after which they will be charged at ₹23 per transaction. Non-financial transactions at these machines remain free.
• Cheque Returns: For ECS/NACH debit returns due to insufficient funds, the bank will levy ₹500 per instance, capped at three charges per month for the same mandate. For outward cheque returns (cheques deposited by customers), a fee of ₹200 per instance will apply if returned for financial reasons. Inward cheque returns (cheques issued by customers) will incur ₹500 per instance for financial reasons and ₹50 for non-financial reasons, excluding signature verification.
• Debit Cards and Statements: The annual fee for a regular debit card is ₹300, and ₹150 for customers in Gramin locations. Replacement cards will cost ₹300. Printed monthly statements requested at a branch or via phone banking will cost ₹100, though they remain free through ATMs, iMobile, or Internet banking.
• Other Charges: If a transaction at another bank's ATM or a point of sale (POS) terminal is declined because of insufficient balance, a ₹25 fee will be charged per instance. Immediate Payment Service (IMPS) outward transaction charges are structured as follows: Up to ₹1,000: ₹2.50 per transaction; ₹1,001 to ₹1,00,000: ₹5; ₹1,00,001 to ₹5,00,000: ₹15.

Rationale and Reactions

ICICI Bank has not officially commented on the reasons for this steep increase in minimum balance requirements. Banks impose minimum balance requirements to cover their day-to-day operational expenses and investments. The move has been met with criticism, with some suggesting it is aimed at filtering out low-value customers. Some users have accused the bank of "filtering customers" based on their wealth, calling the move "elitist" and urging the Reserve Bank of India (RBI) to intervene.

Customers are advised to carefully review the new rules and charges to avoid incurring additional costs. Account holders should check their balances and ensure compliance to avoid penalties.