In metro and urban areas, the minimum average monthly balance (MAMB) will be ₹50,000, up from the earlier ₹10,000. In semi-urban branches, it will rise to ₹25,000 from ₹5,000, while in rural branches, the requirement will double to ₹10,000 from ₹5,000.
The higher MAMB will apply only to new savings bank accounts opened after August 1, 2025, as per the bank’s updated terms.
The bank has also revised its service charges for cash transactions. For cash deposits at branches and cash recycler machines, customers will be allowed three complimentary transactions per month. Thereafter, each transaction will be charged at ₹150. A cumulative monthly value limit of ₹1 lakh is available without charge, beyond which ₹3.5 per ₹1,000 or ₹150—whichever is higher—will apply. Third-party cash deposits are capped at ₹25,000 per transaction.
Cash withdrawals at branches will follow the same structure—three free transactions per month, ₹150 per additional transaction, and a free cumulative monthly limit of ₹1 lakh. Charges beyond this limit will also be ₹3.5 per ₹1,000 or ₹150, whichever is higher. Third-party withdrawals are similarly capped at ₹25,000 per transaction.
Deposits made via cash acceptor or recycler machines during non-working hours (4:30 p.m. to 9:00 a.m.) and on holidays will attract a charge of ₹50 per transaction if the total deposits exceed ₹10,000 in a month, whether in a single or multiple transactions. These charges are in addition to standard cash transaction fees.
For ATM transactions at non-ICICI Bank ATMs in six metro locations—Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad—the bank will levy ₹23 per financial transaction and ₹8.5 per non-financial transaction after the first three transactions in a month. The limit applies to the total number of both financial and non-financial transactions combined.
Reacting to the development, Kotak Mahindra Bank’s top executive Jay Kotak outlined the average monthly income of the Indians, adding that such a sharp hike would not cater to most of the Indian population.
“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,” he wrote in a post on X (formerly Twitter).
“Implication: Physical cost to serve may be high. Digital first is the way. If banks don’t do it, fintechs will. Banking should be for all Indians,” he added.
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!
Implication: physical cost to serve may be high.… pic.twitter.com/x2lzrzgBD7
— Jay Kotak (@jay_kotakone) August 9, 2025
