Introduction
ICICI Bank has announced a comprehensive revision of service charges for Cooperative Bank Current Account customers holding Made2Order (M2O) accounts, effective August 1, 2025. The changes follow a periodic review of its fee structure and will impact multiple services, including cash deposits, withdrawals, cheque returns, ATM transactions, and debit card fees. The revision aims to standardize charges across account variants, replace earlier pricing structures, and align with the bank’s operational and infrastructure costs.
Key Changes in Service Charges and Their Implications
The new fee schedule brings significant updates, especially for cash-related transactions. According to ICICI Bank, the revised charges will apply irrespective of existing complimentary limits for cash transactions across all Current Account variants.
For services such as Demand Draft (DD) and Pay Order (PO) issuance, cheque returns, and ATM interchange fees, the revised charges will kick in once complimentary limits are exhausted. This means customers need to be more mindful of transaction counts to avoid additional costs.
“ICICI Bank branch where customers can enquire about updated M2O account service charges effective August 1, 2025.”
Detailed Breakdown of Revised Charges
1. Demand Draft (DD) and Pay Order (PO) Issuance
- Issued by cash/cheque/transfer: ₹2 per ₹1,000 (minimum ₹50, maximum ₹15,000).
2. Outward Cheque Return
- ₹200 per instance for financial reasons.
3. Inward Cheque Return
- ₹500 per instance for financial reasons.
- ₹50 for non-financial reasons (except for signature verification).
4. ATM Interchange (Non-ICICI Bank ATMs in India)
- Metro cities (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, Hyderabad): ₹23 per financial transaction, ₹9 per non-financial transaction after 3 free transactions.
- Non-metro locations: Same rates apply but after 5 free transactions.
- Maximum of 5 free transactions in a month, capped at 3 in metro locations.
5. International ATM Transactions
- Withdrawals: ₹125 per transaction + 3.5% currency conversion charges.
- Non-financial transactions: ₹25 per transaction.
- Senior citizens: Nil charges.
6. ICICI Bank ATM Transactions
- ₹23 per financial transaction after 5 free transactions per month.
- Non-financial transactions remain free.
Cash Transaction Charges and Monthly Average Balance (MAB) Impact
The revised policy introduces structured limits based on the Monthly Average Balance (MAB) maintained in the account.
- MAB below ₹25 lakh: No charges for cash deposits up to 25% of MAB.
- MAB above ₹25 lakh: No charges for cash deposits up to 25% of MAB or ₹50 lakh, whichever is lower.
- Above free limit: ₹3.5 per ₹1,000 (minimum ₹50 per transaction).
Cash Withdrawals
- Base location: No charges.
- Non-base location: Free up to 10 times MAB (maximum ₹1.2 crore). Beyond this, ₹2 per ₹1,000 (minimum ₹50).
“Updated ICICI Bank cash transaction charges for M2O accounts based on Monthly Average Balance.”
Branch Transaction Limits and Additional Fees
Beyond the core changes in cash deposits and withdrawals, the bank has also revised branch transaction limits.
- More than 20 transactions per month at branches will attract extra fees:
- ₹50 per cash deposit transaction.
- ₹25 for non-cash deposit transactions.
Transactions through self-service modes such as the InstaBIZ app and Corporate Internet Banking (CIB) will remain exempt from these additional charges, encouraging digital banking adoption.
Debit Card Fees and Replacement Costs
The debit card annual fee is set at ₹300, with a replacement fee of ₹300 per lost or damaged card. This cost structure aligns with ICICI Bank’s broader effort to streamline card management charges across account types.
Bank representatives have stated that these changes are part of a larger initiative to make the pricing structure “more transparent, predictable, and fair” while ensuring operational sustainability.
Why ICICI Bank Made These Revisions
ICICI Bank conducts periodic reviews of its service charge structure to align with market conditions, operational costs, and customer behavior. According to the bank, the revisions aim to:
- Encourage customers to use digital and self-service banking channels.
- Manage branch-level operational loads by setting transaction caps.
- Standardize pricing across customer categories for fairness and clarity.
An ICICI Bank spokesperson explained:
“Our revised fee structure for Made2Order accounts is designed to balance customer convenience with sustainable banking operations. While we continue to offer complimentary limits, the changes ensure customers make optimal use of both physical and digital banking infrastructure.”
Customer Reactions and Industry Perspective
While some business customers appreciate the clarity of the revised structure, others express concern about the higher costs for exceeding transaction limits, especially for cash-heavy businesses.
Industry analysts point out that such fee revisions are part of a broader trend among Indian banks to encourage digital transactions while reducing dependence on costly physical branch services.
Ravi Mehta, a banking consultant, noted:
“This is consistent with the move toward a more digital economy. However, businesses in rural and semi-urban areas, where digital infrastructure is less robust, may feel a greater impact.”
Future Outlook
The August 1, 2025 revision marks a significant shift in how ICICI Bank structures service charges for M2O current accounts. Going forward, further changes are possible as the Reserve Bank of India (RBI) continues to promote cashless payments and as customer behavior evolves.
For now, ICICI Bank customers are advised to:
- Monitor their MAB closely.
- Plan cash deposits and withdrawals strategically.
- Maximize use of free transaction limits.
- Leverage digital channels to minimize costs.
Disclaimer: This article is for informational purposes only and is not an official communication from ICICI Bank. Customers should refer to the bank’s official website or contact their branch for the most up-to-date and applicable charges for their account type.
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