TV
In a landmark move that is set to benefit millions of account holders, Canara Bank has announced the complete waiver of the Average Monthly Balance (AMB) requirement across all types of savings bank accounts. Starting June 1, 2025, customers of the state-run banking giant will no longer be penalized for failing to maintain a minimum balance in their savings accounts.
This major step makes Canara Bank the first major public sector bank in India to offer a true zero-balance facility across the board, including regular savings accounts, salary accounts, student accounts, NRI accounts, and more.
“Feel the Freedom, Bank the Difference”
Announcing the move on social media platform X, the bank stated: "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!"
The decision is being hailed as a customer-friendly reform aimed at simplifying banking and expanding financial inclusion, especially for students, rural customers, pensioners, and low-income earners who often struggle to maintain monthly balance thresholds.
What is the Minimum Average Monthly Balance?
The Average Monthly Balance (AMB) is the average amount that customers are required to maintain in their savings account throughout a month. Banks typically impose penalties when this threshold is not met, which varies based on account type and the bank branch's location.
Previously, Canara Bank mandated different AMB requirements depending on the type of account held. Customers faced monetary penalties when they failed to meet these limits, ranging from Rs 250 to Rs 500 in some cases.
A Step Towards Inclusive and Accessible Banking
With this new policy, Canara Bank eliminates the burden of AMB penalties for all its savings bank account holders. This strategic change is expected to attract more customers, particularly the youth, senior citizens, salaried professionals, and NRIs, by offering a more flexible and penalty-free banking experience.
The move is also likely to set a precedent for other public sector banks to follow, as the demand for more inclusive banking practices continues to grow.
What This Means for You
If you hold a savings account with Canara Bank, you can now enjoy the freedom of maintaining your account without worrying about monthly balance requirements. Whether you're a student, a pensioner, or an NRI, this initiative promises greater convenience and ease in managing your finances.
By removing penalties and simplifying account management, Canara Bank is positioning itself as a leader in customer-centric banking reform and setting a new standard in the public sector banking space.
