ICICI Bank has revised its minimum monthly average balance requirements to ₹15,000 for new savings bank accounts in metro and urban locations, effective August 1, 2025, amid backlash on social media after it had announced a five-fold increase in the MAB for its new savings bank accounts to ₹50,000.

For semi-urban and rural locations, the MAB has also been brought down to ₹7,500 and ₹2,500, respectively, from ₹25,000 and ₹10,000 proposed earlier.

“Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences. We thank our customers for their continued trust and feedback, which help us serve them better,” the bank said.

The MAB requirements are not applicable to salary accounts, senior citizens/pensioners (above 60 years), basic savings bank accounts and accounts for people with special needs, the bank said. The bank also clarified that the new MAB is not applicable to savings accounts opened before July 31, 2025.

MAB is the simple average of day-end balances in an account for a calendar month. Savings bank accounts at ICICI Bank earn an interest rate of 2.5 per cent per annum. The penalty for non-maintenance of the required MAB remains unchanged at 6 per cent of the shortfall or ₹500, whichever amount is lower.

The penalty charges are waived off for certain select customers such as those with deposits (current+savings+term+recurring) and a balance of ₹2 lakh or deposits, balance, mutual funds and demat assets of ₹25 lakh and above.

“Now it seems logical. Good introspection,” wrote an user on X. Some, however, remained sceptical. “They had planned it beforehand. Now, a 50 per cent hike wouldn’t face objection,” wrote another user on X.

ICICI Bank’s decision to sharply increase the MAB came at a time when public sector banks in India have largely moved towards rationalising or completely waiving off penal charges for failing to maintain MAB. SBI, PNB, Canara Bank, and Indian Bank have waived these penal charges for all savings accounts.

The new MAB charges of ICICI Bank remain higher than those of private peers — HDFC Bank (₹10,000 for urban) and Kotak Bank (₹10,000 for classic account).