In a major relief for savings account holders, public sector Canara Bank has waived the average monthly balance (AMB) requirement across all its savings bank accounts.
With this move, the bank becomes the first major public sector bank to remove AMB-related charges. It means all savings account holders can now maintain zero balance without penalties. The decision is aimed at promoting financial inclusion and enhancing customer convenience.
The complete waiver of the AMB requirement will benefit these account holders: savings accounts, salary accounts, NRI SB accounts.
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“Effective June 1st 2025, this initiative establishes Canara Bank as the leading Public Sector Bank (PSB) providing a genuine no-penalty for minimum balance requirement across a wide variety of SB accounts. As a result, no SB customer of Canara Bank will face penalties or fees for not maintaining a minimum balance in their SB account,” the PSU lender said in a statement on Saturday.
Previously, customers of the bank had to maintain a minimum average monthly balance based on their account type.
Failing to maintain these criteria usually led to penalty charges. With this new policy, all Canara Bank SB account holders will now enjoy true “no penalty on minimum balance” for all SB accounts free from any AMB-related penalties or fees.
This move is anticipated to benefit millions of Canara Bank customers, including salaried individuals, senior citizens, students, NRIs, and first-time users of banking services, facilitating everyday banking without penalties.