ICICI Bank minimum average balance now Rs 50,000 — How to calculate MAB, penalty and more

Customers who fail to meet the new requirement will face non-maintenance penalties.

ICICI Bank has raised the Minimum Average Balance (MAB) requirement for its savings accounts, and the jump is steep, especially for customers in metro cities. The change applies only to the new customers who have been acquired from August 1, 2025.

Under the new structure, customers of metro and urban branches need to maintain a minimum average balance of Rs 50,000. For semi-urban branches, the requirement is Rs 25,000, and for rural branches, it is Rs 10,000.

Earlier, the MAB for metro and urban locations was Rs 10,000, meaning the threshold has now increased five-fold. Customers who fail to meet the new requirement will face non-maintenance penalties.

How MAB is calculated

Minimum Average Balance is the minimum monthly average that account holders must maintain to avoid penalty charges. Banks calculate it by adding the closing balance in your account for each day of the month and dividing the total by the number of days in that month.

For example, suppose your MAB requirement is Rs 50,000 for a 30-day month. If you keep Rs 50,000 in the account every day, your MAB will be exactly Rs 50,000.

If you keep Rs 15 lakh for one day and Rs 0 for the remaining, your MAB will still be: Rs 15,00,000 ÷ 30 = Rs 50,000.

Earlier, many banks calculated MAB on a quarterly basis. Now, monthly tracking means you need to consistently maintain the balance on a monthly basis.

Some savings accounts have no MAB requirement. These accounts are meant for financial inclusion and typically have restrictions on the number of withdrawals or transactions per month.

Penalties for falling below MAB 

If your average balance falls below the mandated level, ICICI Bank levies a non-maintenance charge. The penalty is 6% of the shortfall from the required MAB or Rs 500, whichever is lower.

Similarly, for metro and urban branches, HDFC Bank requires an AMB of Rs 10,000 or a fixed deposit of Rs 1 lakh.

For semi-urban branches, the requirement is Rs 5,000 AMB or a fixed deposit of Rs 50,000. For rural branches, it is Rs 2,500  or a fixed deposit of Rs 25,000.

HDFC Bank also charges 6% of the shortfall, with a maximum penalty of Rs 600.

The bigger picture

ICICI Bank’s move suggests banks may be looking to raise MAB thresholds after years of stability. With higher operational costs and a shift towards more profitable customer segments, higher balances could become the norm—especially in urban areas.

Ignoring these rules could mean paying penalties month after month—an avoidable drain on your savings.