ICICI Bank Reverses MAB Hike

ICICI Bank initially announced a significant increase in the minimum monthly average balance (MAB) requirements for new savings accounts opened on or after August 1, 2025. The MAB for metro and urban areas was raised fivefold to ₹50,000, with corresponding increases for semi-urban and rural locations. This move made ICICI Bank's MAB the highest among domestic banks in India, contrasting with public sector banks like State Bank of India, Punjab National Bank, Canara Bank, and Indian Bank, which had rationalized or waived such penalties. Following substantial customer feedback, ICICI Bank performed a U-turn, revising the MAB requirements downwards to ₹15,000 for metro and urban areas, ₹7,500 for semi-urban, and ₹2,500 for rural. Despite the rollback, the revised figures still represent a 50% hike compared to pre-August 1 levels. Certain accounts, such as salary accounts, senior citizens/pensioners, basic savings bank deposit accounts, and accounts for people with special needs, are exempt. Penalties for not maintaining the MAB include 6% of the shortfall or ₹500, whichever is lower. This policy adjustment comes after ICICI Bank, along with HDFC Bank and Axis Bank, also reduced interest rates on savings accounts earlier in the year, following rate cuts by the State Bank of India.