In a move aimed at enhancing customer convenience, ICICI Bank has announced a significant rollback in its minimum monthly average balance (MAB) requirement for new savings accounts. The bank has lowered the MAB for standard savings accounts from ₹50,000 to ₹15,000, following valuable feedback from customers. The change comes as part of the bank’s efforts to make its services more accessible while maintaining operational sustainability.
Revised MAB Across Account Categories
The new MAB structure applies to savings accounts opened on or after August 1, 2025, with variations based on the location category:
- Urban/Metro Branches: MAB reduced to ₹15,000 from ₹50,000.
- Semi-Urban Branches: MAB revised upward to ₹7,500 from the earlier ₹5,000, reflecting a 50% increase.
- Rural Branches: MAB increased to ₹2,500 from ₹2,000, also marking a 50% hike.
While the rollback in urban areas is substantial, the upward revision for semi-urban and rural branches aims to align account maintenance charges with service delivery costs, while still keeping the requirements modest.
Exemptions for Specific Accounts
The MAB requirements will not apply to certain categories of customers and accounts, including:
- Salary Accounts
- Senior Citizen Accounts
- PM Jan Dhan Yojana Accounts
- Accounts opened before July 31, 2025
These exemptions ensure that vulnerable sections, low-income households, and long-term customers are not impacted by the revised policy.
Penalty for Shortfall
ICICI Bank has also standardised the penalty for not maintaining the required MAB. Customers falling short of the balance will be charged 6% of the shortfall amount or ₹500, whichever is lower. This structure ensures that penalties are proportionate and predictable, avoiding excessive charges for minor shortfalls.
Balancing Customer Needs and Operational Efficiency
According to the bank, the earlier MAB requirement of ₹50,000 for new urban accounts was introduced to encourage higher-value relationships and support premium banking services. However, customer feedback indicated that the threshold was too high for many individuals, especially first-time account holders, gig workers, and young professionals.
By reducing the urban MAB to ₹15,000, ICICI Bank expects to make its savings accounts more appealing to a broader customer base, particularly in Tier-I and Tier-II cities, where customers seek a balance between affordability and access to robust digital banking services.
Industry Perspective
The move reflects a growing trend among Indian banks to fine-tune their savings account requirements in response to customer expectations and competitive pressures. With the banking sector seeing rapid adoption of digital channels, customer acquisition increasingly depends on flexible account terms and transparent fee structures.
Customer-Centric Approach
ICICI Bank has reiterated its commitment to customer-centric banking, promising to continue reviewing account policies in line with evolving needs. The bank’s focus remains on providing comprehensive financial solutions, including digital payment tools, investment options, and easy access to credit, while ensuring that maintaining an account remains affordable for a diverse customer base.
With this rollback, ICICI Bank positions itself to attract new customers, strengthen relationships with existing ones, and reinforce its image as a responsive and adaptable banking partner
