ICICI Bank hikes minimum balance for new savings accounts: How it compares with SBI, HDFC, Axis Bank

"In metro and urban regions, the minimum average monthly balance (MAMB) now stands at ₹50,000 from the previous ₹10,000. For semi-urban branches, it is ₹25,000 from ₹5,000, and in rural branches, the requirement has doubled to ₹10,000 from ₹5,000," according to the private sector lender's official website.

What is Minimum monthly average balance (MAB)

MAB is the simple average of day-end balances for a calendar month. The bank has increased the required minimum average balance as below:

• Metro and Urban locations: ₹ 50,000
• Semi-urban locations: ₹ 25,000
• Rural locations: ₹ 10,000

What does the MAB hike mean for an ICICI customer?

If you're an existing ICICI customer with an older account, this change does not impact your current MAB requirement, yet. However, any new savings account opened from August 1, 2025 onwards will require significantly higher balances.

Falling below the required MAB triggers a penalty of 6% of the shortfall or ₹500, whichever is lower.

Salary account holders, PM Jan Dhan Yojana accounts, and Basic Savings Bank Deposit Accounts (BSBDAs) are exempt—these remain zero‑balance accounts.

MAB requirement of SBI, HDFC, and Axis Bank

HDFC Bank requires customers to maintain a minimum balance of ₹2,500 in rural areas and ₹10,000 in urban areas. In contrast, State Bank of India (SBI) offers zero-balance savings accounts for both rural and urban customers, making it a more flexible option for those looking to avoid minimum balance requirements.

Axis Bank, on the other hand, mandates a minimum balance of ₹2,500 in rural areas and a higher ₹12,000 in urban areas, placing it among the banks with the stricter requirements for urban account holders.

ICICI Bank new savings account rules: Updated Service Charges

Along with revising its minimum balance rules, ICICI Bank has also modified its charges for cash-related services. Account holders are allowed up to three free cash deposits per month at either bank branches or cash recycler machines. After the free limit, each additional deposit will attract a charge of ₹150 per transaction.

There is also a monthly cap of ₹1 lakh on free cash deposits. Once this threshold is crossed, customers will be charged ₹3.50 per ₹1,000 deposited or ₹150, whichever is greater.