Canara Bank abolishes minimum balance requirement for all savings accounts from June 1

The new policy eliminates these charges entirely, a move the bank said is intended to make banking more inclusive and accessible.

In a significant move aimed at enhancing financial inclusion and customer convenience, Canara Bank has announced that it will no longer impose penalties for non-maintenance of minimum balance in savings accounts. The new policy comes into effect from June 1, 2025, and 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.

“Feel the freedom, bank the difference. Starting 1st June 2025, Canara Bank offers no penalty on non-maintenance of minimum balance,” the bank said in a post on social media platform X, reinforcing its customer-first approach.

Under the previous structure, account holders were required to maintain an 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.

The new policy eliminates these charges entirely, a move the bank said is intended to make banking more inclusive and accessible. “With this new policy, all Canara Bank savings bank account holders will now enjoy true 'no penalty on minimum balance' for all savings bank accounts free from any average monthly balance-related penalties or fees,” the bank noted in its official communication.

The decision is expected to benefit a broad segment of customers, including students, salaried professionals, senior citizens, NRIs, and first-time account holders.