In a significant move, Canara Bank, a major public sector bank, has waived the average monthly balance (AMB) requirement for all its savings bank accounts. This decision makes Canara Bank the first major public sector bank to eliminate AMB-related charges, allowing account holders to maintain zero balance without incurring penalties. The waiver is aimed at promoting financial inclusion and enhancing customer convenience.
As of June 1st, 2025, all savings account holders, including those with salary accounts and NRI SB accounts, will benefit from this initiative. Previously, customers were required to maintain a minimum average monthly balance based on their account type, and failing to do so would result in penalty charges. With the new policy, all Canara Bank savings account holders will enjoy a “no penalty on minimum balance” facility, free from any AMB-related penalties or fees.
This move is expected to benefit millions of Canara Bank customers, including salaried individuals, senior citizens, students, NRIs, and first-time users of banking services. The bank’s decision will facilitate everyday banking without penalties, making it more convenient and accessible for account holders. By waiving the AMB requirement, Canara Bank is promoting financial inclusion and providing relief to its customers, who will no longer have to worry about maintaining a minimum balance in their accounts.
The waiver of AMB charges is a significant step towards customer-centric banking, and Canara Bank’s initiative is likely to set a precedent for other public sector banks to follow. The move is also expected to increase customer satisfaction and loyalty, as account holders will no longer have to pay penalties for not maintaining a minimum balance. Overall, Canara Bank’s decision to waive AMB charges is a welcome move that will benefit its customers and promote financial inclusion.