ICICI Bank Minimum Account Balance: Revised Charges, Who’s Impacted, Penalty & More – All FAQs Answered
ICICI Bank, one of India’s leading private sector banks, has recently revised its minimum account balance requirements and penalty charges. These changes are set to impact millions of savings account holders across the country. Whether you are an existing customer or planning to open an account, it’s important to understand the updated rules to avoid unnecessary charges.
1. What Is the Minimum Account Balance in ICICI Bank?
The minimum average monthly balance (AMB) requirement in ICICI Bank depends on your account type and location:
- Urban & Metro Branches: ₹10,000 AMB
- Semi-Urban Branches: ₹5,000 AMB
- Rural Branches: ₹2,000 AMB
- Special/Salary/Privilege Accounts: Balance requirement may vary or be waived off as per account terms.
Note: AMB is the average of all daily closing balances in your account during a month.
2. What Are the Revised Charges for Not Maintaining the Balance?
If you fail to maintain the required AMB, ICICI Bank imposes a non-maintenance penalty based on how much shortfall occurs:
- Urban & Metro: ₹350 to ₹650 per month (depending on the percentage of shortfall)
- Semi-Urban: ₹250 to ₹500 per month
- Rural: ₹100 to ₹350 per month
Example: If your requirement is ₹10,000 and your average balance for the month is ₹7,000, the penalty will be calculated as per the shortfall slab applicable to your branch type.
3. Who Will Be Impacted by This Change?
The revised rules will impact:
- Existing savings account holders who do not maintain the required AMB.
- New customers opening regular savings accounts in ICICI Bank.
- Inactive or low-balance accounts that remain below the threshold.
Exemptions:
- Salary account holders (as long as salary credit is regular)
- Senior citizen special accounts (depending on account terms)
- Basic Savings Bank Deposit Accounts (BSBDA), which have no minimum balance requirement as per RBI norms.
4. Why Has ICICI Bank Revised the Charges?
Banks revise AMB requirements to:
- Cover operational costs of maintaining accounts.
- Encourage higher deposits and liquidity.
- Bring parity with competing private sector banks that have similar charges.
5. How Can You Avoid the Penalty?
To avoid non-maintenance charges:
- Maintain the required AMB as per your branch location.
- Opt for accounts with no minimum balance like BSBDA or certain digital accounts.
- Convert your savings account to a salary account (if eligible).
- Use recurring deposits or auto-sweep facilities to keep balances above the minimum.
6. Can You Request a Waiver?
Yes, in certain cases:
- One-time waiver may be granted for genuine reasons (e.g., hospitalization, technical issues).
- Customers with long-standing relationships and multiple products with ICICI Bank can request leniency.
However, waivers are discretionary and not guaranteed.
7. What Happens if the Account Remains Below Minimum for Long?
If your account consistently fails to meet AMB requirements:
- Penalties will be deducted monthly.
- The account may eventually be converted to a Basic Savings Bank Deposit Account (BSBDA) with limited facilities.
- Continuous low balance may also impact your eligibility for certain loans or offers.
8. Key Takeaways
- Know your AMB requirement based on your branch location.
- Keep your balance above the limit to avoid monthly penalties.
- Explore zero-balance account options if you find maintaining AMB difficult.
- Use mobile banking or internet banking to track balances regularly.
Conclusion
While the revised charges may seem steep, they are in line with industry trends. Customers who actively manage their accounts can easily avoid penalties by choosing the right account type and keeping track of their balances. If you’re unsure of your account’s AMB requirement, check directly through ICICI Bank’s net banking, iMobile app, or by visiting your branch.