Bank issued new rule: Due to the new policy of Canara Bank, lakhs of Canara Bank customers including salaried persons, senior citizens, students, NRIs and first time users of banking services are expected to benefit. Canara Bank has posted on X regarding the newly announced exemption
Canara Bank New Rule from June 1: Public sector Canara Bank has given a gift to its customers from June 1. The bank has announced the complete elimination of the requirement of Average Monthly Balance (AMB) in all types of savings accounts. This means that even if the deposit in the savings account of the bank is less than the minimum balance, no penalty will be imposed on the account holder. Savings accounts i.e. savings account, salary account, NRI savings account etc. will come under the purview of this exemption.
The bank said in a statement that this order has come into effect from June 1, 2025. No savings account customer of Canara Bank will have to face penalty for not maintaining the minimum balance in his account. Earlier, the bank’s customers had to maintain a minimum average monthly balance depending on the type of their account. Failure to do so would attract a penalty.
What was the penalty earlier?
Earlier, customers had to maintain a minimum monthly balance of Rs 2,000 in savings accounts in urban branches, Rs 1,000 in semi-urban branches and Rs 500 in rural branches. Failure to do so would attract a penalty. The new policy is expected to benefit millions of Canara Bank customers, including salaried individuals, senior citizens, students, non-resident Indians (NRIs) and first-time users of banking services.
Canara Bank is the first major public sector bank in the country to offer ‘no penalty’ facility for not maintaining minimum balance. Currently, interest rates on domestic/NRO/NRE savings accounts in Canara Bank range from 2.70 percent per annum to 4 percent per annum.
How much profit in March quarter
Canara Bank’s net profit on consolidated basis increased by 28 percent to Rs 5,070 crore in the January-March quarter. Net interest income declined by 1.44 percent to Rs 9,442 crore. Net interest margin declined by 0.25 percent to 2.80 percent. Profit increased to Rs 17,540 crore in FY 2025.
