ICICI Bank’s announcement last week had raised the MAB to Rs 50,000, which was in contrast to other banks that have rationalised their penalties.
The ICICI Bank on Wednesday slashed the minimum balance for new savings accounts to Rs 15,000 from Rs 50,000 following significant customer pushback against an earlier steep hike that had sparked widespread outrage.
New MAB thresholds set at Rs 15,000
The bank has now set the MAB thresholds at Rs 15,000 for customers in metro and urban areas, Rs 7,500 for semi-urban customers, and Rs 2,500 for rural account holders. The bank customers must note that the revised limits replace the previouslyย announced higher figures of Rs 50,000ย for metro and urban areas, Rs 25,000 for semi-urban areas, and Rs 10,000 for rural accounts.
“We had introduced new requirements for monthly average balance 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,” the bank said in a statement.
ICICI Bank raised MAB to Rs 50,000 last week
ICICI Bank’s announcement last week had raised the MAB to Rs 50,000, which was in contrast to other banks that have rationalised their penalties.
The earlier hike, which would have been effective from August 1, 2025, was seen as excessively high, especially for middle-class, rural, and semi-urban customers who rely heavily on regular savings accounts. As per the plan, ICICI Bank, Indiaโs second-largest private lender, would have become the domestic bank with the highest MAB requirement, far exceeding peers such as HDFC Bank and State Bank of India.
Many feared that excessive MAB would force them to struggle to maintain accounts
However, many bank customers feared that the excessive MAB would force many to struggle to maintain their accounts without incurring penalties or losing benefits, especially in semi-urban and rural areas.
In response to the fear of the bank customers, the ICICI Bank scaled back the hike to more reasonable levels, retaining a balance structure that aims to balance operational needs with customer accessibility.
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