ICICI Bank Lowers Minimum Balance Requirement to Rs 15,000 for New Savings Accounts

ICICI Bank has lowered its minimum balance requirement for new savings accounts opened from August 1, 2025, to Rs 15,000 for urban locations and Rs 7,500 for semi-urban locations. The previous requirements were Rs 50,000 and Rs 25,000, respectively. The change is in response to customer feedback and aims to better reflect their expectations and preferences. Existing ICICI customers are not affected by this change.

ICICI Bank has announced a significant reduction in the minimum balance requirements for new savings accounts. Effective August 1, 2025, the new minimum average balance (MAB) for urban locations will be Rs 15,000, down from the previous Rs 50,000. Similarly, the MAB for semi-urban locations will be reduced to Rs 7,500, from the earlier Rs 25,000 [1]. These changes come in response to customer feedback and aim to better align with customer expectations and preferences.

The decision to lower the MAB is a departure from the bank's previous policy, which saw a fivefold increase in the requirements in August 2025 [2]. The new policy will not affect existing ICICI customers, who will continue to maintain the old balance requirements. The changes are part of ICICI Bank's ongoing efforts to enhance customer satisfaction and promote financial inclusion [3].

Penalty structures for failing to meet the new MAB will remain unchanged, with customers liable to pay 6% of the shortfall or Rs 500, whichever is lower. This penalty structure aims to ensure that customers maintain a minimum balance in their accounts [4].

ICICI Bank's move to lower the MAB is part of a broader trend in the banking sector, with many public sector banks waiving or rationalizing their MAB requirements in recent years. This shift reflects a growing emphasis on customer-centric policies and the promotion of financial inclusion [2].

The new MAB requirements are expected to make ICICI Bank more attractive to a broader range of customers, particularly those in urban and semi-urban areas. By lowering the balance requirements, the bank aims to encourage more customers to open and maintain savings accounts, thereby increasing its customer base and potentially driving growth.

References:
1. [1] https://www.business-standard.com/companies/news/civil-society-protests-icici-bank-s-savings-account-minimum-balance-hike-125081100327_1.html
2. [2] https://www.thehindu.com/business/Industry/icici-bank-raises-minimum-balance-requirement-for-savings-accounts/article69912896.ece
3. [3] https://studycafe.in/three-major-changes-in-august-2025-you-should-know-new-icici-bank-rules-fastag-annual-pass-and-other-390260.html
4. [4] https://www.livemint.com/industry/banking/icici-bank-average-minimum-balance-requirement-penalty-savings-accounts-interest-rates-11754886667948.html