Icici Bank requires the minimum monthly average balance (MAB) for new Savings Bank (SB) deposits steeply increased with effect from 1 August 2025.
This is at a time when the deposit rates in the banking system fall due to sufficient liquidity and reduction reductions by RBI.
Thus, the minimum MAB for new deposits with the second largest bank in India in Metro & Urban and semi-urban locations has risen five times to £ 50,000 (from £ 10,000) and £ 25,000 (from £ 5,000) respectively. For customers in national locations, the MAB has risen four times to £ 10,000 (£ 2,500).
Industry experts say that the overhaul in MAB a push from the bank indicates class banking.
That the banking system has sufficient liquidity is underlined by the fact that the surplus on 7 Augustone Wash at about £ 3.55 Lakh Crore.
Furthermore, more liquidity will be released in the banking system in Tranches due to the four phases of cash reserve ratio of 25 basic points each with effect from the fourteen days from 6 September, October 4, November 1 and November 29, 2025.
The reduction of the CRR (from 4 percent to 3 percent) would release the primary liquidity from around £ 2.5 Lakh Crore to the banking system in December 2025.
In the background of abundant liquidity and reduction reductions that 100 basic points collect during the period of February June 2025, banks have on average reduced their savings bank rate to 2.50 percent (such as on 1 August 2025) of 2.70/3.00 percent on 2 August 2024.
The interest rates in the long term deposits of more than one annual hour have also fallen to 5.85/6.70 percent on 1 August 2025 of 6.00/7.30 percent on 2 August 2024, per RBI data.
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Published on August 9, 2025
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