Indian Bank and Punjab National Bank (PNB) have announced significant changes to their savings account policies, aiming to promote financial inclusion and make banking more accessible to all sections of society. Effective July 7, Indian Bank will waive minimum balance charges across all savings bank accounts, while PNB will waive penal charges for non-maintenance of minimum average balance (MAB) in all savings accounts from July 1.
The move by Indian Bank is expected to benefit a wide range of customers, including students, senior citizens, small business owners, and rural customers. By eliminating minimum balance charges, the bank hopes to encourage more individuals, especially those from underserved communities, to open savings accounts and participate in the formal banking system. This decision is in line with the bank’s goal of fostering financial inclusion and making banking more affordable for all.
PNB’s decision to waive penal charges for non-maintenance of MAB is particularly aimed at supporting priority segments such as women, farmers, and low-income households. The bank believes that this move will ease financial pressure on customers and encourage greater participation in the formal banking ecosystem. According to PNB’s MD and CEO, Ashok Chandra, waiving these charges will help reduce the stress of balance maintenance penalties and promote more inclusive access to banking services.
In addition to waiving minimum balance charges, Indian Bank has also reduced its one-year marginal cost of funds based lending rate (MCLR) by 5 basis points, bringing it down to 9% effective July 3, 2025. This reduction will directly benefit borrowers by lowering the interest rate on loans. Overall, these moves by Indian Bank and PNB are expected to have a positive impact on the banking sector, promoting financial inclusion and making banking more accessible and affordable for all sections of society.