ICICI Bank’s New Rs. 50,000 Minimum Balance Rule: What Happens If You Don’t Maintain It
Effective August 1, 2025, new ICICI Bank urban savings accounts must maintain a Monthly Average Balance (MAB) of Rs. 50,000. Falling short can attract penalties. (Existing accounts continue under old rules.)
Key rule for urban branches: Minimum MAB = Rs. 50,000 (new accounts opened on/after Aug 1, 2025). Semi-urban: Rs. 25,000; Rural: Rs. 10,000.
How MAB is calculated
Definition: MAB is the average of daily closing balances in a month.
Formula: MAB = (Sum of all daily closing balances in the month) ÷ (Number of days in the month)
Example (30-day month): Keep Rs. 60,000 for 15 days and Rs. 40,000 for 15 days → MAB = [(60,000 × 15) + (40,000 × 15)] ÷ 30 = Rs. 50,000 ✅ No penalty.
Penalty for not maintaining MAB (Urban branches)
- Charge: 6% of the shortfall in required MAB or Rs. 500, whichever is lower
- GST: Applicable on the penalty amount
- Tip: You can offset low-balance days by keeping higher balances on other days within the same month (since MAB is monthly).
Penalty examples for urban accounts (Required MAB: Rs. 50,000)
| Monthly Average Balance (Rs.) | Shortfall vs. Rs. 50,000 (Rs.) | 6% of Shortfall (Rs.) | Penalty Charged (lower of 6% or Rs. 500) | Plus GST |
|---|---|---|---|---|
| 49,000 | 1,000 | 60 | Rs. 60 | GST extra |
| 45,000 | 5,000 | 300 | Rs. 300 | GST extra |
| 40,000 | 10,000 | 600 | Rs. 500 (cap applies) | GST extra |
| 25,000 | 25,000 | 1,500 | Rs. 500 (cap applies) | GST extra |
Who is exempt from non-maintenance charges?
- Select Banking: Deposits & balance of Rs. 2 lakh, or total relationship value Rs. 25 lakh
- Wealth Management: Deposits & balance Rs. 10 lakh, or total value Rs. 50 lakh
- Private Banking: Deposits & balance Rs. 50 lakh, or total value Rs. 5 crore
- Pensioners: Nil charges
- Family Banking: Family jointly maintains 1.5× programme criteria; if not met, charges apply individually
Customer impact
- Liquidity lock-in: More funds idle in low-interest savings
- Opportunity cost: Money could earn more in FDs/other assets
- Behaviour shift: Likely consolidation to fewer, higher-balance accounts
- Premium push: Higher balances may unlock bundled services/waivers
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