ICICI Bank has dramatically raised the bar. From August 1, 2025, new savings accounts in metro and urban branches now require a monthly average balance of ₹50,000. That represents a five-fold jump from the earlier ₹10,000. Semi-urban branches now need ₹25,000 and rural branches ₹10,000. Those who fall short may face penalties equal to 6 percent of the shortfall or ₹500 whichever is lower. This move stands out in sharp contrast to the trend among public sector banks, which are easing or removing such requirements.
HDFC Bank continues to mandate a ₹10,000 average monthly balance for urban branches. Semi-urban requires ₹5,000 and rural ₹2,500. As an alternative, a fixed deposit can substitute the requirement urban customers can opt for a ₹1 lakh deposit, semi-urban ₹50,000, rural ₹25,000. SBI no longer enforces a minimum balance. That means account holders face zero penalties for maintaining low balances. This policy applies across all its savings and Savings Plus accounts.
Canara Bank, along with PNB, Indian Bank, Bank of Baroda and Bank of India, has lifted average monthly balance requirements too. These changes reflect a growing push toward financial inclusion. Smaller private players fall in between. Kotak Mahindra asks for ₹10,000 to ₹20,000, depending on account type. Axis Bank sets ₹10,000 as standard, but its priority account demands ₹2 lakh. Bank of Baroda asks for ₹2,000 quarterly in metros, down to ₹500 in rural branches. Union Bank of India requires ₹1,000 quarterly in metro, ₹250 in rural.
Banks’ choices reflect strategy and customer base. PSU banks seem content with inclusion and simplicity. ICICI and its private peers target higher deposits. Customers now face a clear trade-off: choose low-barrier public accounts or accept higher ceilings and richer services in private banks.
