No More Penalties! These Banks Don't Require Minimum Balance Now

Four major public sector banks in India have removed penalties for not maintaining a minimum balance in savings accounts.

In a customer-friendly move, four major public sector banks in India have waived minimum balance fees for savings accounts.

This is a relief for account holders, especially those in rural areas or with low incomes, who often struggle to maintain the required average monthly balance (AMB). With this change, customers can now freely use their savings accounts without worrying about extra charges due to low balances.

From July 7, 2025, Indian Bank officially announced that there is no need to maintain a minimum balance in any of its savings accounts. Whether it's a regular account or a salary account, customers will not be penalized for falling below the previously mandated minimum amount. This decision is expected to benefit millions of Indian Bank customers across the country.

The country's largest public sector bank, State Bank of India (SBI), took a similar step in 2020 when it abolished the minimum balance requirement for all savings account types. With SBI leading the way, this move by other banks aligns with the trend of providing more inclusive banking services to all sections of society.

In May 2025, Canara Bank removed the requirement to maintain an average monthly balance (AMB) across all savings account types, including regular savings, salary accounts, and NRI savings accounts. This change has been well-received by customers, especially those with fluctuating incomes or irregular deposits throughout the month.

Punjab National Bank (PNB) has now joined the list of customer-centric banks by removing the penalty for not maintaining a minimum average balance (MAB). Previously, PNB levied penalties based on how far the balance fell below the required limit. With this change, PNB account holders can now avoid extra charges.

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