New ICICI bank customers must maintain Rs 50,000 in metros—Here’s what happens if you don't

ICICI Bank Update: India’s second-largest lender, ICICI Bank, has increased the monthly minimum average balance requirement for new savings account holders across all customer segments.

Customers in metro and urban locations who opened their savings accounts on or after August 1 will now have to maintain a monthly average balance of Rs 50,000 to avoid penalties, according to the bank’s latest notification.

For existing customers in these locations, the minimum average balance remains unchanged at Rs 10,000. New customers in semi-urban areas will be required to maintain a minimum average balance of Rs 25,000, while those in rural areas must maintain Rs 10,000. The minimum average balance for older customers in rural and semi-urban locations continues to be Rs 5,000 per month.

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Penalty for non-compliance

Customers failing to maintain the required monthly balance will face a penalty of 6 per cent of the shortfall or Rs 500, whichever is lower.

The bank now offers three complimentary cash deposits into a savings account per month. Beyond this, customers will be charged Rs 150 per transaction, with a cumulative free deposit limit of Rs 1 lakh per month.

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Other account terms remain unchanged

In April 2025, ICICI Bank reduced the interest rate on savings accounts by 0.25 per cent, with accounts holding up to Rs 50 lakh now earning 2.75 per cent interest.

The number of complimentary cash withdrawal transactions per month remains at three. For third-party cash deposits, a limit of Rs 25,000 per transaction applies to all savings accounts.

The hike in minimum average balance requirements stands in contrast to moves by other banks, many of which have lowered penalties. The State Bank of India (SBI), for example, scrapped the minimum balance rule in 2020. Most other banks continue to maintain significantly lower thresholds, generally between Rs 2,000 and Rs 10,000.