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ICICI Bank Cuts Minimum Balance After Backlash – What It Means for Your Savings Account
If you’ve been worried about keeping a large amount of money just to maintain your savings account, there’s some good news from ICICI Bank. After facing a huge backlash from customers, the bank has decided to roll back its steep hike in the minimum balance requirement. This change will make it easier for many people to open and maintain an ICICI Bank savings account without feeling the pinch.
Just a few days ago, ICICI Bank shocked customers by increasing the Monthly Average Balance (MAB) for new accounts in metro and urban branches to ₹50,000. That meant if you didn’t keep an average of ₹50,000 in your account every month, you would face a penalty. Social media quickly exploded with criticism, and many said this move would push away middle-class and small-town customers.
Listening to the feedback, the bank has now revised the rule. From August 13, 2025, anyone opening a new ICICI Bank savings account will need to maintain a ₹15,000 minimum balance in metro and urban areas. For semi-urban branches, the requirement is ₹7,500, and for rural branches, it’s just ₹2,500. Existing account holders will continue under the rules that applied when they opened their accounts.
The penalty for not keeping the minimum balance remains in place, so if your balance drops below the limit, ICICI Bank will charge 6% of the shortfall or ₹500, whichever is lower. This means it’s still important to track your balance so you don’t get an unpleasant surprise.
For everyday customers, this rollback means you no longer have to keep an unrealistically high amount just to avoid charges. If you’re opening a new ICICI savings account, the new limits are far more reasonable and in line with what most people can manage. But it’s still worth remembering the penalty rules, so you don’t lose money unnecessarily.
ICICI Bank’s U-turn is a reminder that customer voices matter, especially in banking. By lowering the minimum balance for savings accounts, the bank has made itself more accessible again, whether you live in a big city, a small town, or a village.
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