Are you tired of penalties being deducted from your bank account every month just because you couldn’t maintain the minimum balance? If so, here’s some great news for you.
Several major government banks in India have now scrapped the charges imposed for not maintaining a minimum balance in savings accounts. This decision comes as a major relief, especially for students, small business owners, senior citizens, and customers living in rural areas.
Indian Bank Leads the Way
Indian Bank has announced a significant change for its customers—there is no longer any requirement to maintain a minimum balance in savings accounts. Even if your account balance is ₹0, you will not be penalized. This means the bank has entirely removed the minimum balance condition for savings accounts.
Before Indian Bank’s announcement, Canara Bank and Punjab National Bank had already implemented similar changes, waiving off the penalty for not maintaining the required balance.
What Does This Mean for You?
This change means that you won’t be charged any penalty even if your savings account has zero balance. It's a huge relief for many, especially those who often struggle to maintain the required minimum amount. The policy is particularly beneficial for students, small traders, customers in rural areas, and senior citizens—people who typically face financial constraints or rely on irregular income. By removing the burden of minimum balance maintenance, banks are making it easier for more individuals to access and stay connected with formal banking services
Union Bank Joins the List
Union Bank of India has also announced that starting from the September 2025 quarter, no penalty will be imposed on regular savings accounts for not maintaining the minimum balance. The bank shared this information through a press release, confirming that customers will not face deductions even if their account falls below the average required balance.
Understanding AMB (Average Monthly Balance)
AMB stands for Average Monthly Balance, which is the minimum average amount a customer needs to maintain in their account over a month. Until now, falling below this threshold meant penalty charges. But with several banks now eliminating this condition, customers can breathe easier.
No More Balance Worries
If your savings account is with any of these banks—Indian Bank, Canara Bank, Punjab National Bank, or Union Bank—you no longer need to worry about keeping a fixed balance every month. This move is particularly helpful for people with low or irregular income, especially in smaller towns and villages.
By easing such banking norms, these banks aim to increase financial inclusion and make everyday banking stress-free for millions of Indians.
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