Compare Bank Balance Policies : ICICI, HDFC, Axis, SBI & More!
In 2025, Indian consumers face significant variation in savings account rules across banks. While ICICI Bank drastically raised its Monthly Average Balance (MAB) requirement to ₹50,000 for new accounts in metro areas, others like SBI, PNB, and Canara Bank have removed MAB penalties altogether. This post breaks down the current minimum balance rules for major banks, helping you make an informed choice.
1. ICICI Bank’s Sharp MAB Hike
New Accounts (from August 2025):
- Metro/Urban: ₹50,000
- Semi-Urban: ₹25,000
- Rural: ₹10,000
Penalty: Higher of 6% of shortfall or ₹500.
Existing Account Holders: Continue under previous thresholds.
2. HDFC Bank Minimum Balance Structure
Regular Savings Account MAB:
- Urban/Metro: ₹10,000
- Semi-Urban: ₹5,000
- Rural: ₹2,500
Alternatives include Fixed Deposit links to waive MAB.
3. Axis Bank’s Tiered Approach & Flexibility
Standard AMB:
- Metro/Urban: ₹12,000
- Semi-Urban: ₹5,000
- Rural: ₹2,500
Premium Account Options:
- Liberty Account: Maintain ₹25,000, spend ₹25,000, or book ₹1 lakh FD to avoid MAB.
4. SBI and Other Public Sector Banks Waive Penalties
- SBI: No MAB requirement or penalty across all savings accounts. Zero-balance accounts available.
- PNB, Canara Bank, Indian Bank, Bank of Baroda likewise waived MAB penalties from mid-2025.
5. Quick Comparison Table
| Bank | Metro/Urban MAB (₹) | Alternatives / Notes |
| ICICI (new) | 50,000 | High penalty for shortfall |
| HDFC | 10,000 | FD options to waive MAB |
| Axis – Easy Access | 12,000 | Simple; higher tier offers flexibility |
| SBI | 0 | No penalty, zero-balance options available |
| PNB / Canara / Others | 0 | Penalty removed for financial inclusion |
6. What These Changes Mean for Customers
- ICICI is clearly targeting affluent segments—its steep hike may deter low- and middle-income users.
- SBI and other public banks prioritize accessibility, easing financial burdens for students, farmers, and salaried workers.
- HDFC and Axis remain in the middle ground—balancing flexibility without harsh thresholds.
7. Tips for Choosing the Right Bank
- If you maintain higher balances ⟶ ICICI may offer premium perks.
- If you need flexible or zero-balance options ⟶ go for SBI, PNB, or Canara.
- Consider HDFC or Axis if you want a middle-path with digital conveniences.
ICICI Bank minimum balance charges for saving account!
Conclusion
2025 marks a turning point in India’s banking landscape—ICICI’s aggressive MAB increase contrasts sharply with public banks shifting toward inclusion. Choose wisely: your account should support your lifestyle, not constrain it.
