Recently, the country’s second-largest private bank, ICICI Bank, has made a big change in the minimum account balance (MAB) rules of its savings account. The MAB limit has been increased for new customers from August 1, 2025, which will directly affect millions of people. In this article, we will explain to you in simple language what MAB is, how it is calculated, how much penalty is charged for low balance, and how you can avoid these charges.
What are the new minimum balance rules of ICICI Bank
The minimum balance limit has been increased for customers opening new savings accounts in ICICI Bank from August 1, 2025.
Metro and urban branches:- Now it is mandatory to maintain an MAB of ₹ 50,000 every month, which was earlier ₹ 10,000.
Semi-urban branches:- Now ₹ 25,000 has to be kept, which was earlier ₹ 5,000.
Rural branches:- Now you will have to maintain ₹ 10,000, which was earlier ₹ 5,000.
According to the bank’s website, these changes will apply only to new accounts, but in the coming time, they may affect old customers as well.
What is Minimum Balance (MAB), and how is it calculated?
Minimum Account Balance (MAB) is the average amount that you have to maintain in your account every month or in a fixed period, so that you can avoid a penalty. It is different for every bank, and it depends on your account type and branch location (metro, semi-urban, rural).
How to calculate MAB:
Calculating MAB is very easy. Add the closing balance of each day of the month and divide it by the total number of days in the month.
MAB = Sum of closing balances of each day / Total days in a month
For example:
If the MAB in a metro branch is ₹50,000 and there are 30 days in a month. If you maintain ₹50,000 every day, the MAB will still be ₹50,000. But if you maintain ₹15 lakh on one day and ₹0 on the remaining 29 days, the MAB will still be ₹15,00,000 ÷ 30 = ₹50,000.
What is the penalty for not maintaining MAB
If the minimum balance in your account falls below the prescribed limit, the bank charges you a penalty, which is called the minimum balance charge. This charge varies according to the bank and branch. Many banks also levy GST on it.