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How to Overcome ICICI Minimum Balance Charges

ICICI Bank Savings account having a Penalty charges of rs 300 plus tax for non maintanence of minimum average quarterly Balance.

Minimum monthly average balance (MAB)Metro and Urban locations - Rs.10,000,
Semi-urban locations - Rs.5,000,
Rural locations - Rs.2,000
Charges for non maintenance of minimum monthly average balanceMetro / Urban locations –
MAB between – Rs. 5,000 to Rs. 10,000 – Rs. 250 per month.
MAB - Less than Rs. 5,000 – Rs. 350 per month.
Semi Urban locations –
MAB between – Rs. 2,500 to Rs. 5,000 – Rs. 250 per month.
MAB - Less than Rs. 2,500 – Rs. 350 per month.
Rural locations -
MAB between – Rs. 1,000 to Rs. 2,000 – Rs. 250 per month.
MAB - Less than Rs. 1,000 – Rs. 350 per month.

Above Table gives you the complete structure about Savings account charges.

ICICI Penalty Charges

Here is How ICICI Charges the account holder. Below is my internet banking account statement.
Red Underline Indicates MAB ( Minimum Average balance) charges.

From January 1, 2012 to March 31, 2012  My Account balance was below 10,000 Rs. So they charged Rs 300 + Service Tax (33 Rs) on April 1, 2012.

From April 1, 2012 to June 30, 2012 My Account Balance was Below 10,000 Rs. Fine was 300 + tax Charged on July 1, 2012.

The non maintenance of MAB charges will be collected on a monthly basis with effect from April 1, 2012. 

Incase if your account is not having sufficient balance (300+) for penalty charges then available balance whatever will be deducted.

MAB is the simple average of day-end balances for a calendar month.

Charges for non maintenance of MAB are as follows:  
MAB between Rs. 5,000.00 to Rs. 10,000.00    -     Rs. 250.00 per month
MAB less than Rs. 5,000.00     -    Rs. 350.00 per month.

Please note that Service Tax of 12.36% on the service charges is also applicable on all the above charges.

How to Overcome and Save Your Money from this Penalty

Simple solution is you can keep your savings account balance as Zero during the month end (last 4 days) and beginning of every month (first 5 days). 

Check out my old statement and my new statement image below.
From the date 22/02/2013 to 07/07/2013 I never kept any balance for more than one day. No penalty then after.

That's it

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