ICICI Bank hikes minimum savings account balance in metros, urban areas from Rs 10,000 to Rs 50,000
Under the revised structure, savings account holders in metro and urban areas must maintain a minimum average balance of Rs 50,000, a substantial jump from the previous Rs 10,000 requirement.
- Aug 9, 2025,
- Updated Aug 9, 2025 10:17 AM IST
ICICI Bank has announced a steep increase in the minimum average balance (MAB) requirements for its savings accounts, effective August 1, 2025. This hike impacts customers across metro, urban, semi-urban, and rural branches, making ICICI’s new MAB the highest among domestic banks in India.
Under the revised structure, savings account holders in metro and urban areas must maintain a minimum average balance of Rs 50,000, a substantial jump from the previous Rs 10,000 requirement. Semi-urban branch customers now need to keep Rs 25,000 on average, up from Rs 5,000. For rural branches, the MAB has increased to Rs 10,000 from Rs 2,500.
Among domestic banks, this is the steepest minimum balance requirement. The country’s largest lender, State Bank of India (SBI), had scrapped the minimum balance rule altogether in 2020, while most other banks maintain significantly lower thresholds, typically between Rs 2,000 and Rs 10,000, to manage operational costs.
For comparison, HDFC Bank, which recently became the largest private sector lender by assets after merging with mortgage lender HDFC, requires Rs 10,000 in metro and urban branches, Rs 5,000 in semi-urban branches, and Rs 2,500 in rural branches.
Banks impose minimum balance requirements to cover their day-to-day operational expenses and investments, and customers who fall below the specified balance are subject to penalty fees.
ICICI Bank customers who fail to maintain the revised minimum balance from August 1 onward will face penalties as per the updated fee schedule. The bank has advised account holders to check their balances and ensure compliance to avoid charges.
| State Bank of India | All savings accounts are zero-balance accounts | N/A |
| Union Bank of India | Available | Rural: With Cheque Book - Rs 250 Without Cheque Book - Rs 100 Semi-Urban: With Cheque Book - Rs 500 Without Cheque Book - Rs 250 Urban/Metro: With Cheque Book - Rs 1,000 Without Cheque Book - Rs 500 |
| HDFC Bank | Not available | Rural: Rs 2,500 Semi-Urban: Rs 5,000 Urban/Metro: Rs 10,000 |
| Axis Bank | Not available | Rural: Rs 2,500 Semi-Urban: Rs 5,000 Urban/Metro: Rs 12,000 |
| Bank of Baroda | Not available | Rural: Rs 500 Semi-Urban: Rs 1,000 Urban/Metro: Rs 2,000 |
| IDFC First Bank | Not available | Rs 10,000 or Rs 25,000, depending on choice |
| Bank of India | Not available | Rural: Rs 500 for Savings Bank Ordinary Account Rs 5,000 for BOI Star Mahila SB Account Rs 10,000 for BOI Star Senior Citizen SB Account |
| Kotak Mahindra | Available | Rural/Semi-Urban/Urban/Metro: Rs 2,500 for Sankalp Savings Account Rs 5,000 for Nova Savings Account Rs 10,000 for Edge Savings Account and Classic Savings Account Rs 20,000 for EveryDay Savings Account and Pro Savings Account Rs 50,000 for Ace Savings Account |
| RBL Bank | Available | Rural/Semi-Urban/Urban/Metro: Rs 5,000 for Digital Savings Account and Senior’s First Savings Account Rs 10,000 for Prime Edge Savings Account and Woman’s First Savings Account Rs 25,000 for Advantage Savings Account Rs 50,000 for RBL Rise Savings Account |
Source: Bankbazaar
In April this year, ICICI Bank reduced the interest rate on its savings accounts by 0.25%. This move came shortly after similar rate cuts by HDFC Bank and Axis Bank, highlighting a wider trend among banks to lower deposit rates following consecutive rate cuts by the Reserve Bank of India.
Customers with savings account balances up to ₹50 lakh will now earn 2.75% interest. For balances above ₹50 lakh, the rate has also been cut by 0.25%, bringing it down to 3.25%. These changes will take effect from Wednesday, April 16.
ICICI Bank has announced a steep increase in the minimum average balance (MAB) requirements for its savings accounts, effective August 1, 2025. This hike impacts customers across metro, urban, semi-urban, and rural branches, making ICICI’s new MAB the highest among domestic banks in India.
Under the revised structure, savings account holders in metro and urban areas must maintain a minimum average balance of Rs 50,000, a substantial jump from the previous Rs 10,000 requirement. Semi-urban branch customers now need to keep Rs 25,000 on average, up from Rs 5,000. For rural branches, the MAB has increased to Rs 10,000 from Rs 2,500.
Among domestic banks, this is the steepest minimum balance requirement. The country’s largest lender, State Bank of India (SBI), had scrapped the minimum balance rule altogether in 2020, while most other banks maintain significantly lower thresholds, typically between Rs 2,000 and Rs 10,000, to manage operational costs.
For comparison, HDFC Bank, which recently became the largest private sector lender by assets after merging with mortgage lender HDFC, requires Rs 10,000 in metro and urban branches, Rs 5,000 in semi-urban branches, and Rs 2,500 in rural branches.
Banks impose minimum balance requirements to cover their day-to-day operational expenses and investments, and customers who fall below the specified balance are subject to penalty fees.
ICICI Bank customers who fail to maintain the revised minimum balance from August 1 onward will face penalties as per the updated fee schedule. The bank has advised account holders to check their balances and ensure compliance to avoid charges.
| State Bank of India | All savings accounts are zero-balance accounts | N/A |
| Union Bank of India | Available | Rural: With Cheque Book - Rs 250 Without Cheque Book - Rs 100 Semi-Urban: With Cheque Book - Rs 500 Without Cheque Book - Rs 250 Urban/Metro: With Cheque Book - Rs 1,000 Without Cheque Book - Rs 500 |
| HDFC Bank | Not available | Rural: Rs 2,500 Semi-Urban: Rs 5,000 Urban/Metro: Rs 10,000 |
| Axis Bank | Not available | Rural: Rs 2,500 Semi-Urban: Rs 5,000 Urban/Metro: Rs 12,000 |
| Bank of Baroda | Not available | Rural: Rs 500 Semi-Urban: Rs 1,000 Urban/Metro: Rs 2,000 |
| IDFC First Bank | Not available | Rs 10,000 or Rs 25,000, depending on choice |
| Bank of India | Not available | Rural: Rs 500 for Savings Bank Ordinary Account Rs 5,000 for BOI Star Mahila SB Account Rs 10,000 for BOI Star Senior Citizen SB Account |
| Kotak Mahindra | Available | Rural/Semi-Urban/Urban/Metro: Rs 2,500 for Sankalp Savings Account Rs 5,000 for Nova Savings Account Rs 10,000 for Edge Savings Account and Classic Savings Account Rs 20,000 for EveryDay Savings Account and Pro Savings Account Rs 50,000 for Ace Savings Account |
| RBL Bank | Available | Rural/Semi-Urban/Urban/Metro: Rs 5,000 for Digital Savings Account and Senior’s First Savings Account Rs 10,000 for Prime Edge Savings Account and Woman’s First Savings Account Rs 25,000 for Advantage Savings Account Rs 50,000 for RBL Rise Savings Account |
Source: Bankbazaar
In April this year, ICICI Bank reduced the interest rate on its savings accounts by 0.25%. This move came shortly after similar rate cuts by HDFC Bank and Axis Bank, highlighting a wider trend among banks to lower deposit rates following consecutive rate cuts by the Reserve Bank of India.
Customers with savings account balances up to ₹50 lakh will now earn 2.75% interest. For balances above ₹50 lakh, the rate has also been cut by 0.25%, bringing it down to 3.25%. These changes will take effect from Wednesday, April 16.