Canara bank waives minimum balance requirement for all SB accounts

Change effective from June 1, customers will no longer have to maintain a minimum balance in their savings bank accounts

Canara Bank has become the first major public sector bank to announce a complete waiver of the average monthly balance (AMB) requirement for all types of savings bank (SB) accounts. The new policy comes into effect from June 1.

 

“No more AMB penalties,” the bank said, highlighting that no SB account holder will be charged for low balances anymore.

 

The bank emphasised that this step reinforces its customer-centric approach and aligns with its mission to make everyday banking simpler and more inclusive, calling it a step towards “genuine no penalty” banking.

 

Applies to all types of SB accounts

 

According to the bank, the waiver covers the entire range of SB accounts, including:

 

·  Regular savings accounts

 

·  Salary accounts

 

·  NRI savings accounts

 

·  Senior citizen and student accounts

 

Previously, customers were required to maintain a minimum monthly average balance depending on the type of account. Non-compliance usually led to service charges or penalty fees.

 

Who benefits?

 

This move is expected to benefit millions of account holders across the country. Those who stand to gain the most include:

 

·  Salaried individuals

 

·  Pensioners and senior citizens

 

·  Students and first-time bank users

 

·  Non-Resident Indians (NRIs)

 

By removing the AMB requirement, the bank aims to make banking more accessible and affordable, especially for customers in rural and semi-urban areas.