These Banks Have Removed Minimum Balance Requirement: Check List

NDTV

4 days ago

Giving relief to customers, some of the major publicly listed banks in India have removed the compulsory practice of keeping Average Monthly Balance (AMB) in the savings accounts. Bank of Baroda, Punjab National Bank, Indian Bank and Canara Bank are some of the big banks to have removed the minimum balance criteria on the majority of their savings accounts.
What is the Average Monthly Balance (AMB)?
The Average Monthly Balance (AMB) is the average balance that individuals are required to maintain in their savings or current account throughout a calendar month. At the close of each month, the AMB is calculated by the bank, and any inability to uphold this required average balance leads to the imposition of penalties. The penalty varies based on the type of savings account.
Here are the banks to have removed the AMB requirement:
Bank of Baroda
Bank of Baroda waived charges on non-maintenance of minimum balance in all standard savings accounts starting July 1, 2025. The customers will not incur any charges if they are short of the AMB. However, the waiver does not apply to Premium Savings Account schemes.
State Bank of India
State Bank of India was the first to act in this direction, waiving minimum balance requirements in 2020. SBI Chairman CS Setty recently told NDTV Profit that the policy has helped first-time account holders.
Canara Bank
Canara Bank waived the average monthly balance requirement in May 2025 for all types of savings bank accounts, including regular savings accounts, salary accounts and NRI savings accounts.
Indian Bank
Starting July 7, 2025, Indian Bank has waived the minimum balance criteria and announced a complete waiver of minimum balance across all savings bank accounts.
Punjab National Bank
The Punjab National Bank (PNB) has announced that it will no longer levy penalties for not maintaining the minimum average balance in savings accounts, in an attempt to promote financial inclusion and make banking more accessible.
"This customer-first initiative, effective from July 1, 2025, is particularly aimed at supporting priority segments such as women, farmers and low-income households, ensuring easier and more inclusive access to banking services without the stress of balance maintenance penalties," the bank said in a press release.
Bank of India
Bank of India has waived off minimum-balance penalties on savings accounts. These changes are aimed at aligning with market dynamics, enhancing financial flexibility, and delivering greater value to customers across segments.