ICICI Bank, India’s second-largest private lender, has reversed its recent decision to impose sharply higher minimum average balance (MAB) requirements on new account holders. The bank faced significant criticism after announcing that new savings accounts opened from August 1, 2025, would need a ₹50,000 MAB in metro and urban branches—five times the earlier requirement of ₹10,000.
Following widespread backlash from customers and industry observers, the bank has now revised its MAB norms to a more moderate ₹15,000 for metro/urban locations, ₹7,500 for semi-urban, and ₹2,500 for rural branches. These revised rates are still higher than previous levels but far lower than the initial hike.
In a statement, ICICI Bank acknowledged the feedback, saying the changes were made to “better reflect customer expectations and preferences.” The bank clarified that the new MAB rules apply only to accounts opened on or after August 1, 2025.
Who Is Exempt?
The bank stated that these changes do not apply to salary accounts, senior citizens and pensioners (above 60 years), BSBDA/PMJDY accounts, or accounts for people with special needs. Existing savings accounts opened before July 31, 2025, will also remain unaffected.
ATM Transaction Charges
Alongside the MAB revision, ICICI Bank detailed its ATM transaction policies:
- ICICI Bank ATMs: First five cash withdrawals are free per month; thereafter, ₹23 per financial transaction applies. Non-financial transactions (balance inquiry, mini statement, PIN change) remain free.
- Non-ICICI Bank ATMs (Metro Cities): First three transactions (financial or non-financial) are free; thereafter, ₹23 for financial and ₹8.5 for non-financial transactions.
- Other Locations: First five transactions are free; post that, the same charges as above apply.
Industry analysts suggest that the initial hike may have been aimed at discouraging low-value accounts, but the swift rollback reflects the importance of customer trust in the highly competitive banking sector.
With this move, ICICI Bank appears to be balancing operational costs with public sentiment, ensuring that customers—especially those in rural and semi-urban areas—are not overburdened by steep account maintenance requirements.
