Minimum Balance Rules: SBI, ICICI, HDFC & Other Banks Compared (₹0–₹50,000)

Private lender ICICI Bank has announced a steep increase in the minimum balance requirement for savings accounts opened on or after August 1, 2025 - a move that has triggered criticism from several quarters. Many argue it could make banking services less accessible to low-income customers.

Under the revised rules, customers at metro and urban branches must maintain a minimum average monthly balance (MAMB) of ₹50,000, up from the earlier ₹10,000. In semi-urban branches, the requirement will jump from ₹5,000 to ₹25,000, while in rural branches it will double from ₹5,000 to ₹10,000.

The higher balance rules will apply only to new accounts. Customers who fail to meet the threshold will face a penalty of 6% of the shortfall or ₹500, whichever is lower.

Minimum Balance Rules for Rural and Urban/Metro Branch Savings Accounts

In contrast, several public sector banks have been easing balance rules in recent years. State Bank of India (SBI) eliminated the minimum balance requirement for all savings accounts - rural and metro - back in 2020. Similarly, Punjab National Bank (PNB) and Canara Bank removed penalty charges for not maintaining the average monthly balance, offering much-needed relief to account holders.

While ICICI Bank’s move is aimed at premiumising new accounts, it also raises concerns about financial inclusion - especially when competitors are choosing a more customer-friendly path.