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PNB scraps minimum balance penalties: Here's how it may help customers
The step is expected to help economically vulnerable customers who may struggle to maintain monthly balance limits, said the state-owned lender.
What has changed?
Like many other banks, PNB had levied penalties on customers who failed to maintain a MAB in their savings accounts. These charges varied based on account type and geography (urban, semi-urban or rural branches), and ranged from Rs 10 to Rs 600 or more per month, excluding GST.
Now, under the new policy:
-No penalty will be levied for non-maintenance of MAB in any PNB savings account.
-The waiver applies across all customer segments and locations.
Why this matters
For many account holders, particularly those who are poor and or live in rural areas, maintaining a monthly average balance can be burdensome. PNB said waiving off penalties will encourage continued use of formal banking systems, especially among first-time or low-income users.
'This decision reflects our unwavering commitment to inclusive banking. We believe that waiving these charges will ease financial pressure on customers and encourage greater participation in the formal banking ecosystem.' said Ashok Chandra, managing director and chief executive officer of Punjab National Bank, in a press statement.
The Reserve Bank of India (RBI), has in recent years pushed for greater financial inclusion, encouraging banks to design simpler, more accessible products.
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