August 14, 2025

Hold on tight, banking fans! ICICI Bank, India’s second-largest private lender, just pulled a fast one—but this time, it’s a sweet surprise! After hearing loud customer voices, ICICI has drastically cut down the minimum average balance (MAB) required to keep savings accounts happy. Originally set at a steep Rs 50,000 for cities, it now drops to only Rs 15,000 for metro and urban areas. That’s a massive relief for many! For semi-urban areas, the MAB is now Rs 7,500, slashing down from Rs 25,000, and rural folks pay just Rs 2,500 instead of Rs 10,000. The bank announced on its website: “We had introduced new requirements for the Monthly Average Balance (MAB) for new savings accounts opened from August 1, 2025. Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences.” So, it’s all about listening to you! But, beware! If you fall short on the new balance, there’s still a penalty—6% of the shortfall or Rs 500, whichever is lower. Not too harsh, but still a nudge to keep your accounts in shape. Meanwhile, RBI Governor Sanjay Malhotra keeps cool and clear: “The Reserve Bank of India has left it to the banks to decide the quantum of minimum average balance. Some banks have capped it at Rs 10,000, others at Rs 2,000, and some have done away with it altogether.” So, banks have the freedom to set these rules! What about other big players? HDFC Bank is sticking to its guns, keeping the old rules intact. Regular savings accounts still require Rs 10,000 as MAB, and their Savings Max accounts ask for a hefty Rs 25,000. On a different track, several public sector banks are waving goodbye to penalties. State Bank of India, Punjab National Bank, Canara Bank, and Indian Bank have all scrapped penalties for not keeping minimum balances. This move boosts financial inclusion—bringing banking benefits to more people without scary fees! However, many private banks aren't dropping charges just yet. They generally charge 6% of the balance shortfall, or Rs 500 per quarter, whichever is lower. Plus, many have trimmed interest rates on savings accounts recently to manage their profits in tough market times. So, the banking battleground is buzzing with changes! ICICI’s new, friendlier balance rules after your feedback are a big win. But watch out—penalties still exist, and each bank has its own game plan. Ready to check your bank balance now or switch to a friendlier bank? The time to act is now!

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Tags: Icici bank, Minimum average balance, Savings account, Bank charges, Customer feedback, Banking policy,