Finance Desk – In a big step towards promoting financial inclusion and customer-friendly banking, Canara Bank has announced the removal of Average Monthly Balance (AMB) charges for all types of savings bank accounts, effective June 1, 2025.
What’s New?
No Minimum Balance Requirement
Customers can now maintain zero balance in their savings accounts without any penalty.
Applies to All Savings Accounts
The waiver is applicable for:
Regular Savings Accounts
Salary Accounts
NRI Savings Accounts
First Among PSU Banks
Canara Bank becomes the first major public sector bank to introduce this true zero balance facility across account categories.
Why This Matters
Until now, Canara Bank required customers to maintain a minimum average monthly balance based on the branch category:
Branch Type: Metro/Urban, Previous AMB – ₹2,000, Penalty (if not maintained) – ₹25–₹45 + GST (based on shortfall)
Branch Type: Semi-Urban, Previous AMB – ₹1,000, Penalty (if not maintained) – ₹25–₹45 + GST
Branch Type: Rural, Previous AMB – ₹500, Penalty (if not maintained) – ₹25–₹45 + GST
These penalties caused inconvenience, especially for students, senior citizens, and low-income account holders. Now, all such charges have been removed.
Who Benefits?
This move will benefit millions of account holders, including:
Salaried employees
Senior citizens
Students and first-time account holders
NRIs
Rural and low-income customers
What This Means for Customers
No penalty if you don’t maintain the minimum balance
Freedom to use your account without worrying about charges
Encouragement for more people to open and use bank accounts, even with low balances
In its official statement, Canara Bank emphasized its aim to provide convenient and inclusive banking services and establish itself as a leading PSU bank that prioritizes customer welfare over hidden fees.
