ICICI Bank to Hike Minimum Balance for New Savings Accounts from August 1
In a move that is likely to impact its customers, ICICI Bank has announced a significant hike in the minimum average monthly balance (MAMB) requirement for new savings accounts to be opened on or after August 1, 2025. The bank has revised its MAMB requirements for different categories of branches, making it essential for customers to maintain a minimum balance to avoid charges.
As per the revised norms, the MAMB requirement for metro and urban branches will increase to ₹50,000 from the current ₹10,000. This means that customers opening new savings accounts in these branches will need to maintain an average monthly balance of ₹50,000 to avoid paying charges. For semi-urban branches, the MAMB requirement will be ₹25,000, while rural branches will see it reduced to ₹10,000.
The revised MAMB requirements are likely to affect customers who have been maintaining a lower average monthly balance in their savings accounts. The bank has not explicitly mentioned the reasons behind this hike, but it is likely an attempt to increase revenue and reduce the burden of maintaining large numbers of low-balance accounts.
The impact of this hike will be felt more by customers in metro and urban areas, who will need to maintain a significantly higher balance to avoid charges. This could lead to a decrease in the number of savings accounts being opened in these branches, as customers may opt for other banks that offer more competitive MAMB requirements.
It is worth noting that existing customers will not be affected by this hike, and they can continue to maintain their current average monthly balance without facing any charges. However, new customers who open savings accounts on or after August 1 will need to adhere to the revised MAMB requirements.
ICICI Bank has also revised its service charges for new savings accounts, which could further impact customers. The bank has increased the service charges for certain services, such as cash handling, cheque return, and other miscellaneous charges. These charges will apply to new customers who open savings accounts on or after August 1.
The revised service charges are as follows:
- Cash handling charges: ₹50 per transaction (was ₹25)
- Cheque return charges: ₹100 per cheque (was ₹50)
- Stop payment charges: ₹50 per transaction (was ₹25)
- Cheque book issuance charges: ₹100 per book (was ₹50)
- Demat invoice charges: ₹50 per invoice (was ₹25)
These revised charges are likely to impact customers who frequently use these services, and they may need to adjust their financial habits to avoid incurring additional costs.
In conclusion, ICICI Bank’s decision to hike the minimum average monthly balance requirement for new savings accounts is likely to impact customers, particularly those in metro and urban areas. Customers who have been maintaining a lower average monthly balance will need to adjust their financial habits to avoid paying charges, while those who frequently use certain services may need to pay increased service charges. As a result, it is essential for customers to review their account details and adjust their financial habits accordingly.
