Canara Bank, a major public sector lender, has announced a significant move to enhance financial inclusion and customer convenience. As of June 1, 2025, the bank will no longer impose penalties on customers for non-maintenance of minimum balance in their savings accounts. This new policy applies to all categories of savings bank accounts, including regular, salary, and NRI accounts. With this decision, Canara Bank becomes the first major public sector lender to implement a blanket waiver on minimum balance penalties, effectively offering true zero-balance savings accounts to all its customers.
Under the previous structure, account holders were required to maintain a minimum Average Monthly Balance (AMB) of Rs 2,000 in urban branches, Rs 1,000 in semi-urban branches, and Rs 500 in rural branches. Failure to meet these thresholds attracted penalty charges. However, the new policy eliminates these charges entirely, making banking more inclusive and accessible to a broad segment of customers, including students, salaried professionals, senior citizens, NRIs, and first-time account holders.
The bank’s decision is intended to make banking more convenient and customer-friendly. According to Canara Bank, the new policy will allow all savings bank account holders to enjoy true “no penalty on minimum balance” for all savings bank accounts, free from any average monthly balance-related penalties or fees. The bank has announced the new policy through social media, saying “Feel the freedom, bank the difference. Starting 1st June 2025, Canara Bank offers no penalty on non-maintenance of minimum balance.”
This move is expected to benefit a large number of customers who previously had to worry about maintaining a minimum balance in their accounts to avoid penalty charges. The bank’s decision is a significant step towards enhancing financial inclusion and customer convenience, and it is likely to be welcomed by its customers. With this new policy, Canara Bank is poised to become a more attractive option for those looking for a hassle-free banking experience.