Mumbai, August 13–14, 2025 — In a dramatic turnaround, ICICI Bank rolled back its recently announced steep hike in the minimum average balance (MAB) requirement for new savings accounts, scaling the threshold back to far more accessible levels from August 13–14.
Background: Sharp Increase Triggers Backlash
Earlier this month, the bank had announced significant hikes in the MAB requirement for accounts opened on or after August 1, 2025:
- Metro/urban locations: raised from ₹10,000 to ₹50,000,
- Semi-urban: from ₹5,000 to ₹25,000,
- Rural areas: from ₹2,500 to ₹10,000 .
These changes sparked widespread outrage on social media, with critics arguing that the new rules would burden the average Indian, many of whom live on much less. One netizen responded: “Ninety percent of India survives on ₹25,000 a month. So ICICI Bank wants them to keep two months’ salary as minimum balance?”
The U-Turn: New Balance Requirements Announced
In response to the backlash, ICICI Bank dramatically rolled back the earlier decision — and here’s what the updated MAB now looks like for new accounts opened from August 1, 2025 onward:
- Metro/urban areas: ₹15,000 (down from ₹50,000),
- Semi-urban areas: ₹7,500 (down from ₹25,000),
- Rural areas: ₹2,500 (down from ₹10,000) .
For selected groups — including pensioners under 60 years and students from approximately 1,200 registered institutions — the MAB has been waived entirely . Existing accounts opened before July 31, 2025 remain subject to the earlier MAB norms (e.g., ₹10,000 for urban areas) .
Penalties for Non-Compliance and Fee Details
Customers failing to maintain the revised MAB will be liable to pay 6% of the shortfall or ₹500, whichever is lower .
Additional charges include:
- ₹23 per financial ATM transaction beyond five free transactions per month,
- ₹8.50 per non-financial transaction after the free limit,
- ₹25 fee if a transaction at another bank’s ATM is denied due to insufficient funds,
- Cheque dishonor charges ranging from ₹50 to ₹500 .
Markets React
ICICI Bank’s stock came under the spotlight amid the news. Analysts suggest the rollback may influence investor sentiment, though shares remained relatively flat following the announcement.
