#ICICIBank #MinimumBalance #BankCharges #SavingsAccount #BankingUpdate #DigitalBanking #ATMCharges #CashDepositCharges #UrbanBanking #MetroBanking #RuralBanking
Mumbai — ICICI Bank, one of India’s largest private sector lenders, has announced a significant revision in the minimum average balance and service charges for savings accounts. The changes will apply to all new accounts opened on or after August 1, 2025, as part of the bank’s updated terms and conditions.
According to the revised policy, customers in metro and urban areas will now be required to maintain a Minimum Average Monthly Balance (MAMB) of ₹50,000, a sharp increase from the earlier ₹10,000. For semi-urban branches, the MAMB has been raised to ₹25,000 from ₹5,000, while rural branches will see the minimum balance requirement double to ₹10,000 from the existing ₹5,000.
The bank clarified that these changes will not impact customers with savings accounts opened before August 1, 2025. However, for new account holders, failing to maintain the prescribed MAMB could result in substantial penalty charges.
Changes in Cash Transaction Charges
Alongside the higher minimum balance requirement, ICICI Bank has also revised its cash transaction policy, aiming to limit excessive cash usage and promote digital banking channels.
For cash deposits at bank branches or cash recycler machines:
-
Customers will be entitled to three complimentary transactions per month.
-
Beyond this limit, ₹150 will be charged per transaction.
-
A cumulative free limit of ₹1 lakh per month applies; transactions exceeding this amount will attract charges of ₹3.5 per ₹1,000 or ₹150, whichever is higher.
-
Third-party cash deposits will be capped at ₹25,000 per transaction.
For cash withdrawals at bank branches:
-
Customers will get three free transactions per month, after which ₹150 will be charged per additional transaction.
-
The free cumulative withdrawal limit is also ₹1 lakh per month, with charges of ₹3.5 per ₹1,000 or ₹150, whichever is higher, applying beyond the limit.
-
Third-party withdrawals will be capped at ₹25,000 per transaction.
Additional Charges for Non-Working Hours Deposits
In a move aimed at regulating after-hours deposits, ICICI Bank will now levy extra charges for transactions at cash acceptor or recycler machines during non-banking hours (4:30 p.m. to 9:00 a.m.) and on holidays.
If the total deposits during these periods exceed ₹10,000 in a month—whether through a single deposit or multiple transactions—a ₹50 fee per transaction will apply. This fee will be in addition to the standard cash transaction charges.
ATM Transaction Revisions
ICICI Bank has also revised charges for ATM transactions at non-ICICI Bank ATMs in the six major metro cities—Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad.
For these locations:
-
The first three transactions per month (including both financial and non-financial) will be free.
-
After this, a ₹23 charge per financial transaction and ₹8.5 per non-financial transaction will be levied.
The limit applies to the total number of combined transactions—for example, two withdrawals and one balance inquiry would exhaust the free quota.
Impact on Customers
Industry analysts believe the move signals a shift towards higher-value customer accounts and a push for digital and non-cash banking transactions. While the changes may not affect existing account holders immediately, new customers—particularly in metro and urban centers—will face significantly higher costs of maintaining an account.
The sharp increase in MAMB for metro accounts—from ₹10,000 to ₹50,000—marks a fivefold hike, which could deter low and middle-income customers from opening accounts in these areas. For rural and semi-urban branches, although the jump is lower in absolute numbers, the percentage increase is still substantial.
Banking experts note that such changes often encourage customers to explore zero-balance accounts under the Jan Dhan Yojana, small finance banks, or cooperative banks that maintain lower balance requirements.
Reason Behind the Hike
While ICICI Bank has not issued a detailed explanation, industry observers suggest that the hike in MAMB is likely due to rising operational costs, inflationary pressures, and a strategic focus on high-value deposits. With the banking sector increasingly adopting digital services, banks are also looking to discourage heavy reliance on branch-based cash transactions, which are more expensive to manage.
Moreover, by raising transaction charges for high-volume cash users, the bank aims to nudge customers towards digital payment systems, UPI transfers, and online banking platforms—all of which offer lower transaction costs for both the bank and the customer.
Customer Advisory
Customers planning to open new ICICI Bank savings accounts after August 1, 2025, should:
-
Review the minimum balance requirements based on their branch location.
-
Monitor cash deposit and withdrawal limits to avoid extra fees.
-
Use digital banking tools such as mobile banking apps, UPI, and internet banking to minimize cash-related charges.
-
Be aware of ATM usage limits at non-ICICI Bank ATMs in metro locations.
Conclusion:
The changes mark one of the most significant updates to ICICI Bank’s retail banking terms in recent years, signaling a clear move towards premium account management and reduced cash dependency. For customers, the message is clear—maintain higher balances, use fewer branch transactions, and shift to digital channels to avoid fees.
#ICICIBank #MinimumBalance #BankCharges #SavingsAccount #BankingUpdate #DigitalBanking #ATMCharges #CashDepositCharges #UrbanBanking #MetroBanking #RuralBanking #SemiUrbanBanking #FinanceNews #BankingSector #IndianBanking #MoneyMatters #PersonalFinance #BankingTips #August2025Update #BankAccountCharges
