ICICI Bank Hike Minimum Balance : If you thought keeping ₹10,000 in your savings account was enough, think again! Leading private banks like HDFC Bank and ICICI Bank have raised their Minimum Average Balance (MAB) requirements for savings accounts — and the jump is massive. For many customers, this could mean a heavier burden just to keep their accounts running.
HDFC Bank’s New Rules – Starting August 1, 2025
From August 1, 2025, anyone opening a new savings account in metro and urban branches of HDFC Bank will need to maintain a minimum average balance of ₹25,000.
Earlier, the requirement was:
- Urban branches: ₹10,000
- Semi-urban branches: ₹5,000 (monthly average)
- Rural branches: ₹2,500 (quarterly average)
The semi-urban and rural requirements remain unchanged for now. The hike applies only to new accounts in metro and urban areas.
Fail to maintain the required MAB? The penalty will be 6% of the shortfall or ₹600, whichever is lower.
HDFC also offers different rules for ‘Classic’ customers, who can qualify by meeting any one of these:
- ₹1 lakh monthly average in savings account
- ₹2 lakh quarterly average in current account
- Salary credit of ₹1 lakh or more in HDFC corporate salary account
ICICI Bank’s Big Jump – Up to ₹50,000 MAB
ICICI Bank has gone even further. From August 1, 2025, new savings accounts in metro and urban branches will require a ₹50,000 MAB — up from just ₹10,000 earlier.
For semi-urban branches, the new MAB is ₹25,000, and rural branches will need ₹10,000. The penalty for not maintaining the balance? 6% of the shortfall or ₹500, whichever is lower.
Like HDFC, ICICI’s new rules apply only to accounts opened after August 1. Existing customers will continue with old limits unless otherwise informed.
Other Private Banks Also Raise the Bar
- Kotak Mahindra Bank: ₹10,000 MAB for Classic Savings; penalty 6% (max ₹500 per month)
- YES Bank:
- PRO Plus & Essence accounts – ₹25,000 MAB
- PRO Max account – ₹50,000 MAB
MAB is an average of the closes balances at the end of every day in a month and there are the penalties according to the type of account and services.
Public Sector Banks Take the Opposite Route
Interestingly, the minimum balance has been done away with by several banks in the public sector such as SBI, Canara Bank, and PNB. In other words, it does not penalize when the balance falls, which is radically different in the policies of the private banks.
The Bottom Line
As the private banks are trying to push MAB up to 50,000, the mere account holders are also asking the question whether maintaining a savings account will be a luxury in the near future.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.