‘No penalty on non-maintenance’: Canara Bank waives minimum balance rule on all savings accounts

NEW DELHI: Canara Bank has announced that it will no longer require savings account holders to maintain a minimum balance, in a big relief for customers.Starting June 1, 2025, all types of savings bank (SB) accounts, including regular, salary, and NRI accounts, will have zero penalty for not maintaining the Average Monthly Balance (AMB).Sharing a post on X, the bank said, “Feel the freedom, bank the difference. Starting 1st June 2025, Canara Bank offers no penalty on non-maintenance of minimum balance. Applicable to all Savings Bank Account holders!”With this move, Canara Bank becomes the first major public sector bank to offer true zero-balance savings accounts across the board.Starting June 1, 2025, Canara Bank customers will no longer face penalties for not maintaining the minimum balance in their savings accounts. The bank earlier announced this major update in a press release issued on Saturday.“With this new policy, all Canara Bank savings bank account holders will now enjoy true “no penalty on minimum balance” for all savings bank accounts free from any average monthly balance-related penalties or fees,” the bank added.Previously, customers had to maintain an AMB of Rs 2,000 in urban branches, Rs 1,000 in semi-urban branches, and Rs 500 in rural branches, failing which penalty charges were applied. The new policy removes all such charges, making banking more inclusive and accessible.The change is expected to benefit millions, including salaried employees, senior citizens, students, NRIs, and new account holders, making everyday banking easier and penalty-free.