In a U-turn, ICICI Bank has slashed the minimal month-to-month common balance (MAB) requirement to ₹15,000 from the sooner steep hike of ₹50,000, citing “valuable feedback” from clients.
The minimal balance requirement for its new financial savings financial institution accounts opened on or after August 1 was raised 5 occasions to ₹50,000.
“Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences. We thank our customers for their continued trust and feedback, which help us serve them better,” ICICI Bank posted on its web site.
Similarly, the MAB for semi-urban and rural places have been revised downwards to ₹7,500 and ₹2,500 respectively, it mentioned.
Before August 1, the MAB for semi-urban and rural areas was ₹5,000 and ₹2,000, respectively. Even after the rollback, the financial institution has effected a 50% hike throughout all these segments.
However, the financial institution mentioned, the revised MAB necessities usually are not relevant to wage accounts, senior residents/pensioners (above 60 years), fundamental financial savings financial institution deposit accounts/PM Jandhan Yojana, and accounts for folks with particular wants. They are additionally not relevant to financial savings accounts opened earlier than July 31, 2025.
MAB is the minimal balance {that a} buyer is required to keep in a checking account. If the balance falls beneath the required quantity, the financial institution levies a penalty. In case account holders fail to meet the MAB, clients will likely be liable to pay penal fees of 6% of the shortfall in required MAB, or ₹500, whichever is decrease.
The balance within the financial savings checking account of ICICI Bank earns an curiosity of two.5% every year, it mentioned.
The hike in MAB comes at a time when public sector banks have rationalised their penalties or utterly waived them off.
Led by the nation’s largest lender, State Bank of India (SBI), different public sector lenders like Punjab National Bank, Canara Bank, and Indian Bank, too, waived off penal fees for failing to keep the MAB in all financial savings accounts.
Most public sector banks (PSBs) have eliminated their minimal balance fees basically financial savings financial institution accounts, whereas some have rationalised to promote monetary inclusion, Minister of State for Finance Pankaj Chaudhary mentioned within the Lok Sabha on Monday (August 13, 2025).
The fees are eliminated/rationalised as a part of their enterprise technique with the business knowledge, in view of the perceived advantages which can come up when it comes to progress in deposits, amongst others, he had mentioned.
