ICICI Bank has recently implemented a new rule regarding Minimum Average Balance (MAB) for its savings accounts, in which the amount of minimum balance required for customers has been increased several times. As soon as this rule came to light, people on social media started calling ICICI Bank a bank of the rich. However, minimum average balance is not a new story in India. Along with private banks, government banks also used to follow this rule. At the same time, if the customers were not able to fulfill the conditions of the banks, then a fine was also imposed by the public bank.

In this news, we tell you how the minimum average balance has been increased by ICICI Bank. Also, what are the rules of government banks? Other private banks like HDFC and Axis Bank are charging a penalty for not maintaining a minimum balance. Apart from this, how much have government banks earned in the form of a penalty or fine?

What is Minimum Average Balance (MAB)
Whenever you open a savings account in a bank, you are told that you have to maintain a minimum balance. This is also called the Monthly Account Balance (MAB). The minimum balance may vary depending on the bank and the account. If this amount is not maintained, the bank starts charging you a penalty.

ICICI Bank has said that now people living in metro and urban areas will have to keep an average of Rs 50,000 in their accounts every month, which was only Rs 10,000 earlier. That is, a direct increase of five times. At the same time, in semi-urban areas, this amount has increased from Rs 5,000 to Rs 25,000, and in rural areas, instead of Rs 5,000, Rs 10,000 will have to be kept. If customers are unable to do this, they will have to pay a penalty.

What is the condition of government banks?

State Bank of India (SBI)
The country's largest government bank, SBI, abolished the rule of a minimum average balance 5 years ago. That is, State Bank customers can keep money in their accounts as per their needs without any worry.

Canara Bank
After the State Bank of India and Canara Bank removed the rule of Average Monthly Balance (AMB) from all its savings, salary, and NRI accounts in June 2025. Earlier, a huge penalty was imposed by the bank for not maintaining the minimum balance.

Indian Bank
From July 7, 2025, Indian Bank made many big changes in its policy, in which the condition of minimum balance was abolished. Information was given by the Indian Bank that the aim of the bank is to take the convenience of the customers forward. Therefore, such rules are being abolished on any account.

Punjab National Bank (PNB)
The country's second-largest public sector bank, Punjab National Bank, also took a big decision on July 1, 2025, in which it was announced that the condition of a minimum average balance has been removed for the convenience of the customers. Now customers can keep any amount of money in the account according to their needs.

Bank of Baroda

Along with Punjab National Bank, on July 1, 2025, Bank of Baroda also gave the facility of zero balance to its customers. There will be no penalty for customers with a minimum balance. The bank said that the minimum balance rule will not apply to normal savings accounts, although customers of premium accounts are required to keep a certain amount.

What are the rules of private banks?

HDFC Bank

Customers who have savings accounts in HDFC Bank will have to maintain an average monthly balance (AMB) of Rs 10,000 for urban areas. For semi-urban branches, HDFC Bank's average monthly balance (AMB) must be maintained at Rs 5,000, while in rural areas it is necessary to have an average monthly balance (AMB) of Rs 2,500.

Talking about the penalty, the bank is charging a penalty of up to Rs 600 in urban areas and Rs 300 in semi-urban and rural areas.

Axis Bank
In Axis Bank, it is necessary to maintain an average monthly balance (AMB) of Rs 10,000 for semi-urban or rural areas. If this is not done, the bank will impose a penalty of 6% on the amount that is less. However, according to the new rules, the bank is currently imposing a maximum penalty of Rs 600.

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