ICICI Bank Shares in Spotlight After Rollback of Rs 50,000 Minimum Balance Rule
August 14, 2025 | By Nishtha Awasthi, ETMarkets.com
ICICI Bank, one of India’s leading private sector lenders, has attracted significant investor attention following its decision to roll back a recently introduced high minimum balance requirement for savings accounts in metro and urban branches. This move comes after a strong backlash from customers and stakeholders across the country.
Revised Minimum Balance Norms
Initially, ICICI Bank had announced a sharp hike in the monthly average balance (MAB) requirements for new savings accounts, raising the bar from Rs 10,000 to Rs 50,000 in metro and urban branches. Semi-urban branches had seen an increase from Rs 5,000 to Rs 25,000, while rural branches were set to move from Rs 2,000 to Rs 10,000. Customers failing to maintain the required average balance would have faced penalties amounting to 6% of the shortfall or Rs 500, whichever was lower.
However, following widespread discontent, the bank has revised these limits to a more moderate level applicable only for new accounts opened from August 1, 2025. The updated MAB norms are as follows:
- Metro and Urban branches: Rs 15,000
- Semi-urban branches: Rs 7,500
- Rural branches: Rs 2,500
This rollback excludes specific account types such as salary accounts, accounts for senior citizens, Basic Savings Bank Deposit Accounts (BSBDA) under the Pradhan Mantri Jan Dhan Yojana (PMJDY), and accounts for individuals with special needs. Moreover, all savings accounts opened before July 31, 2025, will remain unaffected by these newer requirements.
Transaction Fees and Other Charges
ICICI Bank also reiterated its transaction fee structure with the revised policy. Customers are entitled to up to five free transactions per month, across all locations, with a ceiling of three free transactions applicable in six major metro cities: Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad. Beyond these limits, charges will apply as follows:
- Rs 23 per financial transaction
- Rs 8.5 per non-financial transaction
These charges apply equally to transactions made on ICICI Bank and non-ICICI Bank ATMs, though minor variations might exist depending on the location.
Market Reaction and Investor Outlook
ICICI Bank’s shares responded cautiously to the revised announcement, closing flat at Rs 1,421.15 on the Bombay Stock Exchange (BSE) on Wednesday, August 13. Investors are closely monitoring how this policy rollback affects the bank’s customer base and future financial performance.
The initial announcement had triggered concerns among banking customers and financial analysts regarding increased banking costs and accessibility. By reverting to a less stringent minimum balance requirement, ICICI Bank aims to balance profitability with customer satisfaction, maintaining its competitive edge in a crowded banking sector.
Background and Context
The monthly average balance is calculated as the average of daily closing balances in a calendar month, serving as a standard benchmark for banks to assess minimum balance compliance. ICICI Bank’s decision to revise the MAB norms reflects its responsiveness to customer feedback and the dynamic banking environment shaped by evolving customer expectations.
By relaxing the norms, ICICI Bank may encourage more customers to open and maintain accounts while reducing the risk of attrition among existing clients wary of stringent banking rules.
About ICICI Bank
ICICI Bank is India’s second-largest private sector bank by assets, offering a wide range of financial products and services to retail and corporate customers. Known for its extensive branch and ATM network, the bank plays a critical role in the Indian banking landscape.
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