Bank Minimum Balance Charges: How Monthly Average Balance (MAB) is Calculated and Penalties for Not Maintaining It

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Starting August 1, 2025, ICICI Bank increased its minimum balance requirement for new savings accounts. Metro and urban branches will see a significant jump to Rs 50,000, while semi-urban and rural branches will require Rs 25,000 and Rs 10,000.

Starting August 1, 2025, opening a savings account with ICICI Bank in a metro or urban branch will require keeping a much fatter wallet. India’s second-largest private lender has raised its minimum balance requirement (MBR) from Rs 10,000 to a steep Rs 50,000 per month for new accounts.

What’s Changed

Under the revised rules:

  • Metro & Urban Branches: Rs 50,000 per month (up from Rs 10,000)
  • Semi-Urban Branches: Rs 25,000 per month (up from Rs 5,000)
  • Rural Branches: Rs 10,000 per month (up from Rs 5,000)
  • These changes only apply to customers opening accounts after August 1, 2025.

A Quick Refresher: What is a Minimum Balance Requirement?

The Minimum Account Balance (MAB) is the least amount of money you must keep in your savings account to avoid penalties. It often depends on your branch location — metro areas usually demand higher amounts.

How ICICI Compares to Other Banks

Here’s where ICICI’s new MBR stands next to other major banks:

  • HDFC Bank: Rs 10,000 in urban, Rs 5,000 in semi-urban, Rs 2,500 in rural (FD alternative available)
  • SBI: No minimum balance for savings accounts
  • Kotak Mahindra Bank: Rs 10,000–Rs 20,000 based on account type; 6% penalty for shortfalls
  • Axis Bank: Rs 10,000 across branches or Rs 50,000 FD; Rs 2 lakh for priority accounts
  • Bank of Baroda: Quarterly balance of Rs 2,000 (metro), Rs 1,000 (semi-urban), Rs 500 (rural)
  • PNB: Rs 10,000 (metro), Rs 5,000 (urban), Rs 2,000 (semi-urban), Rs 1,000 (rural)
  • Union Bank of India: Rs 1,000 (metro/urban), Rs 500 (semi-urban), Rs 250 (rural) – quarterly basis
  • Canara Bank: No minimum balance (waived from June 1, 2025)
  • IDBI Bank: Rs 10,000 (metro/urban), Rs 5,000 (semi-urban), Rs 2,500 (rural)
  • Indian Bank: Rs 2,500 (with cheque), Rs 1,000 (without cheque) in metro/urban
  • Yes Bank: Zero balance for basic accounts; Rs 10,000–Rs 25,000 for premium accounts or equivalent FD

What This Means for Customers

The jump from Rs 10,000 to Rs 50,000 is likely to pinch new metro and urban account holders the most. Financial experts suggest comparing offerings across banks, looking for zero-balance or FD-linked savings accounts, and understanding penalty structures before opening a new account.

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