ICICI Bank Increases Minimum Account Balance to 50,000 INR: Determining Your Maintenance Balance Amount and Understanding Penalties
In a recent update, ICICI Bank has revised the Minimum Average Balance (MAB) requirements and penalty structure for its savings account holders. These changes will primarily affect new customers starting from August 1, 2025.
The MAB is calculated as the simple average of the closing day balances in your account for each day of a calendar month. This means that the bank adds the closing balance of each day in the month and then divides the total by the number of days in that month (30 or 31 days) to get the average balance for that month.
The MAB requirement varies by location:
- Metro and urban branches: Rs 15,000 (revised from Rs 50,000 after customer feedback)
- Semi-urban branches: Rs 25,000
- Rural branches: Rs 2,500
If the MAB is not maintained, ICICI Bank charges a penalty of 6% on the shortfall amount or Rs 500, whichever is lower. For example, if your MAB falls below Rs 15,000, the penalty would be 6% on the shortfall or Rs 30 if the shortfall is Rs 500.
It's worth noting that the penalty amount is capped at Rs 500, regardless of the size of the shortfall. For instance, if your MAB is Rs 5,000 short of the mandated level, the penalty will be Rs 300 (6% of 5,000 equals 300).
Moreover, the penalty calculation does not take into account the number of days the MAB is below the mandated level. This means that even if the MAB falls short for a single day, the penalty will still apply.
Customers who fail to meet these MAB requirements will have to pay penalties set by the bank. However, existing customers retain the earlier MAB requirements.
In summary, the MAB calculation for ICICI Bank accounts is based on the simple average of the closing day balances in your account for each day of a calendar month. The new MAB limits vary by branch location, and penalties apply if the MAB is not met. These requirements apply to accounts opened after August 1, 2025.
Despite the cricket-filled streets of India and the allure of Bollywood, managing personal-finance is crucial for every Indian, even when choosing a bank like ICICI. Starting from August 1, 2025, new account holders need to be mindful of revised Minimum Average Balance (MAB) requirements and penalty structures in ICICI Bank, particularly if they reside in urban regions, as the MAB requirement drops to Rs 15,000 compared to the previous Rs 50,000.
