ICICI Bank has introduced a major change that affects new savings account holders starting August 1, 2025. The bank has raised the minimum average monthly balance that customers must maintain. This decision has sparked a lot of discussions because it could make banking harder for some people, especially those with lower incomes. Here’s what you need to know about the new rules, how they compare with other banks, and what penalties you might face if the new minimum balance is not maintained.
The key change is the steep increase in the required minimum balance. For customers opening accounts in metro and urban branches, the monthly minimum balance jumps up to ₹50,000. This is a huge leap from the earlier ₹10,000 requirement. In semi-urban branches, the minimum balance requirement goes up from ₹5,000 to ₹25,000. Even in rural areas, the minimum increases from ₹2,500 (previously ₹5,000 in some reports) to ₹10,000. It’s important to note that these new balance rules apply only to accounts opened on or after August 1, 2025. Existing account holders will not see any change in their minimum balance requirements unless the bank informs otherwise.
If customers fail to maintain the new minimum balance, they will be charged a penalty. The penalty will be 6% of the amount by which their balance falls short of the required minimum, or ₹500, whichever is less. However, certain types of accounts, such as salary accounts and zero-balance accounts like those under government schemes, have exemptions from these penalties.
ICICI Bank says that these changes are part of a plan to create a premium banking experience for their customers with higher balances. Customers who keep higher balances may enjoy benefits like free NEFT transfers and up to three free cash transactions every month before incurring transaction fees.
This move by ICICI Bank is notable because many other banks, especially public sector lenders, have been moving in the opposite direction. For instance, State Bank of India, Punjab National Bank, and Canara Bank have relaxed or completely removed minimum balance requirements and fees related to low balances, aiming to make banking easier and more affordable for everyone.
The contrast between ICICI Bank’s policy and that of these public sector banks has raised concerns that the steep hike could discourage new customers from opening accounts or limit accessibility for those who cannot afford to keep large sums in their savings accounts. Critics say this may widen the gap in financial inclusion rather than support it.
Below is a simple table showing the minimum average balance requirements across different types of branches for new ICICI Bank savings accounts starting August 1, 2025:
| Branch Type | New Minimum Average Balance (₹) | Previous Minimum Average Balance (₹) |
| Metro/Urban | 50,000 | 10,000 |
| Semi-Urban | 25,000 | 5,000 |
| Rural | 10,000 | 2,500 to 5,000 |
With this detailed view, it is clear that the new balances are more than double or even up to five times higher than before, depending on the location.
In summary, if you plan to open a new savings account with ICICI Bank after August 1, 2025, be prepared to keep a significantly higher minimum balance. This change may bring more benefits for some customers but could also make banking less accessible for others. It’s important to weigh these new rules carefully and decide which bank and account type best fit your financial needs.
