Bank Minimum Balance Rule: Four government banks of the country have given good news to crores of customers. State Bank of India, Indian Bank and Canara Bank have decided not to impose penalty for not maintaining minimum balance in savings account. Earlier, Punjab National Bank had given a big relief on minimum balance.
Bank Minimum Balance Rule: Relief news has come in front of crores of bank customers of the country. Indian Bank, State Bank of India (SBI) and Canara Bank have given great relief on minimum balance. Now if there is zero balance in your savings account, then there will be no penalty. At the same time, Punjab National Bank had announced not to charge any charge for keeping zero balance in the savings account. Till now a penalty was levied if the minimum balance was less. These fines were different depending on the type of account and geographical location (urban, semi-urban or rural branches). These fines ranged from Rs 10 to Rs 600 or more.
According to media reports, from July 7, 2025, Indian Bank customers will now get rid of the minimum balance charge. This means that Indian Bank has completely abolished the need to keep minimum balance on savings account. Even if you have zero rupees in your account, no charge will be levied on you. The bank will provide this benefit to students, small businessmen, customers from rural areas and senior citizens. Its aim is to connect more and more people to banking services.
State Bank of India (SBI)
The State Bank of India (SBI) had already removed the minimum balance requirement from all its savings accounts in 2020. Under this policy, customers no longer face any penalty for low balance.
Canara Bank
Canara Bank also announced the removal of the average monthly balance requirement for all types of its savings accounts, such as regular savings accounts, salary accounts and NRI savings accounts, in May 2025. This initiative has further increased the popularity of the bank among customers, as they now have the freedom to use their account without worrying about the minimum balance.
What is Minimum Average Balance?
Minimum Average Balance i.e. MAB is the average amount that should remain in your bank account every month. In simple language, the bank wants that there should always be some money in your account, so that the account continues and it is easy for the bank to maintain it. The hassle of maintaining minimum balance is over Direct benefit to rural and low income group customers More control and flexibility on savings Digital transactions will be promoted. This facility has been given by the bank only to the customers with savings account.
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