ICICI Bank Cuts Minimum Balance After Backlash

Mumbai: Following public outrage, ICICI Bank on Wednesday partially reversed its minimum average balance (MAB) requirements from Rs 50,000 to Rs 15,000 for new customers in urban areas. Under the revised terms, new savings account holders in semi-urban and rural branches will be required to maintain Rs 7,500 and Rs 2,500, respectively, as against the Rs 25,000 and Rs 10,000 decided earlier by ICICI Bank.

“We had introduced new requirements for the minimum Monthly Average Balance (MAB) for new Savings Accounts opened from August 1, 2025. Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences," ICICI Bank said.

Last week, the private sector lender had revised the minimum MAB for new accounts opened on or after August 1, 2025, in metro and urban branches from Rs 10,000 to Rs 50,000 drawing sharp criticism from customers.

However, the bank said, the revised MAB requirements are not applicable to salary accounts, senior citizens/pensioners (above 60 years), basic savings bank deposit account/PM Jandhan Yojana, and accounts for people with special needs. They are also not applicable to savings accounts opened before July 31, 2025.

Meanwhile, private lender HDFC Bank has revised fees and charges for savings, salary, and NRI accounts, effective August 1, 2025, making cash transactions, cheque services, certificate issuance, and electronic fund transfers costlier. The changes include reduced free transaction limits, increased per-transaction charges, and revised fees for NEFT, RTGS, IMPS, and ECS/ACH returns, with different rates for senior citizens and premium account holders. The country’s largest lender State Bank of India has also revised Immediate Payment Service (IMPS) transaction charges for retail customers from August 15, and for corporate customers from September 8.

According to HDFC Bank website, account services at branches such as address confirmation, photo verification, certificate of balance, and interest certificate will cost Rs 100 for regular customers and Rs 90 for senior citizens. These services were free earlier. Similarly, ECS/ACH first return charges would cost Rs 500 for regular customers and Rs 450 for senior citizens. Cheque returned charges drawn on the bank due to insufficient funds will be Rs 500 for first return and Rs 550 for second return onwards. Cheque deposited returned unpaid would cost Rs 200 and Rs 180 for senior citizens.

HDFC Bank regular customers will get 4 free cash transactions per month; after which a charge of Rs 150 per transaction will apply. The free monthly value limit for self and third-party transactions at any branch has been reduced from Rs 2 lakh to Rs 1 lakh per account. Beyond this limit, charges will be Rs 5 per Rs 1,000 or part thereof, subject to a minimum of Rs 150. The third-party daily cash transaction limit is Rs 25,000 per day at any branch; transactions above this amount are not permitted.

The bank has also revised RTGS charges, NEFT, and IMPS charges. The private lender will charge Rs 20 for RTGS transactions between Rs 2 lakh and Rs 5 lakh (Rs 18 for senior citizens) and Rs 45 for transactions above Rs 5 lakh (Rs 40.5 for senior citizens).

Although there were reports that HDFC Bank has revised the Minimum Average Balance effective August 1, 2025, in a metro or urban branch to Rs 25,000 from the previous requirement of Rs 10,000, the Bank spokesperson denied the reports.

SBI has also revised its Immediate Payment Service (IMPS) transaction charges for retail customers from August 15, and for corporate customers from September 8, according to the bank’s website. For SBI retail customers, transfers between Rs 25,000 and Rs one lakh will attract Rs 2 plus GST, between Rs 1 lakh and Rs 2 lakh will be charged Rs 6 plus GST, and between Rs 2 lakh and Rs 5 lakh will cost Rs 10 plus GST.