A major blow for ICICI Bank customers: Higher charges for cash withdrawals and heavy penalties for missed EMI payments..
ICICI Bank New Rules: If you have a savings account with ICICI Bank, this news is relevant to you. Starting December 1, 2026, the bank is revising certain service charges associated with savings accounts. Consequently, you will incur higher costs for depositing or withdrawing cash beyond the prescribed free limits. Additionally, penalties will apply if automated payments—such as loan EMIs or insurance premiums—fail. Find out how these new rules will impact your finances.
What are the charges for cash deposits and withdrawals?
Under ICICI Bank’s new rules, charges for cash deposits made at a bank branch or a cash recycler machine will increase once the free limit is exceeded. The current charge of ₹3.50 per ₹1,000 will be raised to ₹4. This same change will also apply to cash withdrawals made at a branch.
Three free transactions per month
Customers will be entitled to three free cash transactions each month. Beyond this, a charge of ₹150 will be levied for every additional transaction.
Free cash transactions up to ₹1 lakh per month
Furthermore, cash transactions totaling up to ₹1 lakh per month will not incur any value-based charges. If the monthly limit of ₹1 lakh is exceeded, a charge of ₹4 per ₹1,000—or ₹150, whichever is higher—will be applied. If both the transaction count and the total amount exceed their respective free limits, the higher applicable charge will be levied. However, these additional charges will not apply to cash deposits or withdrawals made within the free limits.
Penalties for failed EMIs or automated payments
The bank has also revised the charges applicable in the event of a failure of automated payments processed via ECS/NACH. If a payment fails due to an insufficient balance in your account, a charge of ₹500 will be levied for the first instance. For subsequent failures—the second and third times—under the same mandate, a penalty of ₹550 will be charged for each instance. A maximum of three such charges can be levied against a single mandate within a month.
This will primarily affect customers who have automated payments (auto-debits) set up for loan installments (EMIs), insurance premiums, or other recurring bills. It is, therefore, essential to ensure that your account has a sufficient balance before the scheduled payment date.
Significant relief for Jan Dhan account holders: No charges on cash withdrawals.
For Basic Savings Bank Deposit Accounts (BSBDA), cash transaction charges remain zero. This means there will be no fees for depositing or withdrawing cash from bank accounts linked to the Pradhan Mantri Jan Dhan Yojana; the service remains entirely free. However, the charges applicable to failed ECS/NACH payments have been updated for these accounts as well. If an auto-debit (ECS/NACH) payment—such as a loan installment or a bill—fails due to an insufficient balance, a penalty will now be imposed.
Please note that the same rules do not apply to all types of savings accounts. Customers should, therefore, check the specific charges applicable to their account type on their bank's official website.
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