ICICI Bank 2025 Update – New Minimum Balance Rules, Charges, RBI’s View & Latest Developments
Stay informed about ICICI Bank’s latest changes for August 2025, including new minimum balance requirements, revised service charges, RBI’s clarification, and a recent cyber-fraud case.
Introduction
One of the largest private sector banks in India, ICICI Bank, declared several updates in August 2025 that would impact millions of account holders across the country. The minimum balance requirement has been drastically increased, and there are changes in ATM aswell as cash deposit charges; a mixed bag of reactions has been drawn from customers and experts alike.
Along with them, the bank had hogged the limelightight thanks to a major cyber-fraud case and a clarificatory statement from the Reserve Bank of India (RBI) on how such rules are made. So if you’re banking with ICICI or considering opening an account here, this is what you should know.
1. New Minimum Balance Rules
Effective August 1, 2025, ICICI Bank has raised the Minimum Average Balance (MAB) requirements for new savings accounts. Here’s how the changes look:
| Location | Previous MAB | New MAB | Increase (%) |
| Metro/Urban | ₹10,000 | ₹50,000 | 400% |
| Semi-Urban | ₹5,000 | ₹25,000 | 400% |
| Rural | ₹2,500 | ₹10,000 | 300% |
If your balance goes below the required balance, the penalty will be 6% of the deficiency or ₹500,, whichever is less. Pensioners, beneficiaries of basic savings bank deposit accounts and account holders under Group Savings product (as per clause No.8/20 of these operating rules) shall be exempted from levy of such penalties
2. Revised Service Charges
ICICI Bank has also updated its fee structure. Here’s what’s changed:
– ATM usage fees have increased, particularly if you exceed the free transaction limit, whether at ICICI ATMs or other banks’ machines.
– International ATM withdrawals will now attract higher charges.
– Free limits for cash deposits and withdrawals have been reduced. Once you exceed these limits, higher handling fees will apply.
3. RBI’s Position on the Changes
RBI Governor Sanjay Malhotra made it clear on August 11, 2025, that the central bank does not prescribe how much minimum balance a bank should keep. It is totally up to individual banks to decide their MAB and charges related to it. Public sector banks generally keep lower thresholds for MAB or do not keep them at all in order to promote financial inclusion.
4. Why the Sudden Increase in MAB?
It seems to be part of the pivot by ICICI Bank toward high-net-worth customers who have the ability to maintain higher balances that would further deepen the low-cost deposit base—known as CASA (Current Account Savings Account) deposits—for the bank, thereby strengthening liquidity management. While all other major private banks—HDFC and Axis included—still average between ₹10,000 and ₹15,000 for their metro MABs, ICICI’s figure stands out at ₹50,000 by being the highest among peers.
5. The Cyber-Fraud Case
Another case isthe SIM-swap cyber-fraud that recently made ICICI Bank accountable. Fraudsters were able to access victims’ accounts and withdraw huge amounts. The bank has been ordered under the Information Technology Act to compensate the concerned customers witha total payout of about ₹1.05 crore.
6. What This Means for Current and New Customers
If you’ve opened your ICICI Bank account after August 1, 2025: You have to follow the new MAB rules now. Otherwise, the previous one’s still operative for existing customers unless the bank revises it through official notice. However, one should regularly look into one’s account terms so as not to fall prey to some unexpectedly imposed penalties.
7. How to Avoid Penalties and Manage Your Account Smartly
– Link your salary account or set up recurring deposits to maintain the required balance.
– Consider family banking to pool balances from multiple accounts.
– Compare other banks’ offerings—some public sector banks and digital banks still provide zero-balance savings accounts.
8. ICICI Bank’s Current Direction
ICICI Bank has seen the lowest rate of employees leaving among large private banks over the past three years. The bank keeps putting money into its digital banking, rules, and steady support for funds.
9. Public Reaction
Changes brought by ICICI Bank in 2025 are strategic change clarity leaning much more towards the premium customer base. While this should be stronger for the bank’s financial position, people have to realise new rules and tweak their banking habits in accordance with it. If you don’t want to face penalties and want to make the most of your account, being informed and proactive pays.
Conclusion
Changes brought by ICICI Bank in 2025 are strategic change clarity leaning much more towards the premium customer base. While this should be stronger for the bank’s financial position, people have to realise new rules and tweak their banking habits in accordance with it. If you don’t want to face penalties and want to make the most of your account, being informed and proactive pays.