SBI, PNB, BOB, HDFC, ICICI, Kotak Mahindra, Axis Bank: What are the monthly average balance rules at India’s top lenders?

Private lender ICICI Bank has raised the minimum monthly average balance (MAB) requirement by up to fivefold for new accounts, effective August 2025. For metro and urban branches, the MAB will increase from ₹10,000 to ₹50,000, while in semi-urban areas, the requirement has been adjusted to ₹25,000. Bank branches in rural areas have to maintain a minimum MAB of ₹10,000.

The increase, across all metro, urban, semi-urban, and rural branches, points to a wider shift in the bank’s strategy. Whether other banks will follow suit depends on multiple factors. Currently, there are no indications of any such change from other banks.

“While this move may not prompt an immediate response from current account holders, it could gradually influence customer behaviour over time. At the same time, we can expect ICICI Bank to introduce new products, features, or value-added services to encourage customers to continue banking with them,” said Adhil Shetty, CEO, BankBazaar.com

An MAB is the minimum amount you must keep in your account each month. Failing to maintain the specified minimum balance will lead to charges, which will vary depending on the account type and branch location.

A savings account is one of the simplest ways to start managing money and growing your wealth, said Shetty. “Most banks require customers to maintain a certain MAB in their accounts every month or quarter. If the balance drops below this limit, the bank may impose a penalty, the amount of which can vary from bank to bank. Before signing up for a savings bank account, customers must understand the bank's terms and assess the impact of higher MAB requirements,” he added. 

While the State Bank of India, the largest bank, does not have any MAB requirement as per its website, other public sector lenders such as Punjab National Bank (PNB) and Bank of Baroda (BOB) require a minimum balance in the ₹500-2,000 range. MAB requirement varies between ₹2,500 and ₹10,000 among private banks (refer table). 

Responding to a query soon after the ICICI announcement, RBI governor Sanjay Malhotra said the central bank has left it to the banks to decide the quantum of minimum average balance. “The kind of minimum balance they choose to maintain is their decision. Some banks have set it at ₹10,000, some have waived it, and others have set it at ₹2,000… But this is not in the domain of the regulator," the RBI governor said.

Meanwhile, in a veiled criticism of the ICIC move, Kotak811 chief Jai Kotak shared on X. “Every Indian must access our financial sector. 90% of India makes less than ₹25,000 a month. A ₹50,000 minimum balance implies a sum equal to ~94% of Indians’ monthly income is to be left with the bank at all times, else a fee.”