ICICI Bank has reduced the minimum average balance (MAB) limit from ₹ 50,000 to ₹ 15,000 for new customers in urban areas. This decision has been taken after the strict displeasure of the customers. Earlier, the bank had increased it from ₹ 10,000 to ₹ 50,000. The new limit is still ₹ 5,000 more than the old.

Relief in semi-urban areas also
The minimum average balance for new customers in semi urban areas has been reduced from ₹ 25,000 to ₹ 7,500. At the same time, it will be ₹ 5,000 for the old customers of rural and semi-ibn areas.

ICICI limit is different compared to other banks
The recent step of ICICI Bank is different from the stance of other banks. India’s largest bank SBI abolished the minimum balance rule in 2020. At the same time, most other banks keep a minimum balance limit between ₹ 2,000 to ₹ 10,000.

Minimum balance increased due to recent rules change
Recently, ICICI Bank changed its rules and increased the minimum amount in the savings account i.e. minimum average balance limit. It was increased by 5 times to ₹ 10,000 to ₹ 50,000 as compared to earlier. The bank had clarified that this change would only apply to accounts that have been opened since August 1, 2025. After this change, the protest started from the customers.

How long will this reduced limit be implemented?
The increased limit was implemented from August 1 and now the reduced limit will also be effective from this date. ICICI Bank has clarified that this new limit salary account will not be applicable to accounts of senior citizens and pensioners. Also, this rule will not apply to bank accounts opened before 31 July.

Why is the minimum balance charge charged?
Nowadays banks provide many facilities like ATMs, mobile banking and customers support to their customers. Along with this, the bank also has to fulfill the responsibility of operating its office, salary of staff, and smooth operation of digital services. To meet these expenses, banks charge a variety of charges, including minimum balance charge.