Key Points
- Urban/metro MAB revised to Rs15,000 from Rs50,000 for new savings accounts opened on/after Aug 1, 2025.
- Semi-urban MAB reduced to Rs7,500; rural set at Rs2,500 for new accounts.
- Older accounts (opened before Jul 31, 2025) remain unaffected; exemptions continue for salary, senior citizens, BSBDA/PMJDY, and special needs accounts.
- Non-maintenance charge: 6% of shortfall or Rs500, whichever lower (per schedule for new accounts).
- Rollback follows widespread criticism of the earlier Rs50,000 MAB; bank cites “valuable feedback” from customers.
New Delhi: ICICI Bank has rolled back its steep hike in minimum monthly average balance (MAB) for new savings accounts in metro and urban branches, cutting the requirement to Rs15,000 from Rs50,000 following heavy public pushback and customer feedback. The revision applies to accounts opened on or after Aug 1, 2025, while existing accounts opened before Jul 31, 2025 remain under prior terms.
Revised MAB Requirements (New Accounts From Aug 1, 2025)
- Metro/Urban: Rs15,000
- Semi-Urban: Rs7,500
- Rural: Rs2,500
ICICI Bank said the changes “better reflect” customer expectations after the initial fivefold hike drew sharp criticism across social platforms and industry watchers.
Who’s Exempt
The updated MAB and related Schedule of Charges do not apply to:
- Salary accounts
- Senior citizens/pensioners above 60 years
- Basic Savings Bank Deposit Accounts (BSBDA) and PMJDY accounts
- Accounts for people with special needs
Select categories such as students and specific pension accounts may also have nil MAB as per product schedule updates.
Charges For Non‑Maintenance
If the monthly average balance is not maintained in applicable new accounts, the fee is 6% of the shortfall or Rs500, whichever is lower, per revised schedules referenced by media and bank materials.
Why The Rollback Matters
The earlier decision would have made ICICI Bank’s urban MAB one of the highest among major lenders, far above common Rs10,000 norms at peers, prompting concerns on inclusion and customer impact. After criticism, the bank aligned the requirement to a more moderate Rs15,000 for urban branches while easing semi-urban and rural thresholds.
Context And Clarifications
- Applicability: Changes apply to new savings accounts opened from Aug 1, 2025; older accounts (pre–Jul 31, 2025) are unaffected.
- Definition: MAB is the simple average of day-end balances over a month; falling short triggers penalties as per schedule.
- Regulatory stance: RBI has left MAB decisions to banks; several public-sector banks have waived MAB, while private peers often keep lower thresholds.
What Customers Should Do
- New applicants in metro/urban areas can plan for Rs15,000 MAB; semi-urban and rural customers should note Rs7,500 and Rs2,500 thresholds respectively.
- Those eligible for exempted categories (salary, senior citizen 60+, BSBDA/PMJDY, special needs) remain outside these MAB rules.
- Review product-specific schedules for any program-based waivers or nil-balance options referenced by bank communications and media summaries.
