Current Affairs - Banking - Discussion

ICICI Bank, India’s second-largest private sector lender, has announced a significant hike in its Minimum Average Balance (MAB) requirements for metro, urban, semi-urban, and rural branches, effective August 2025. This revision marks the first such steep increase among private banks, with metro and urban branches seeing the MAB raised from ₹10,000 to ₹50,000, semi-urban from ₹5,000 to ₹25,000, and rural from ₹2,500 to ₹10,000. The policy also introduces stricter penalties for non-maintenance and revised cash transaction limits. This move has sparked discussions on the rising banking cost burden, especially when many public sector banks are reducing or waiving similar charges.