Minimum balance waiver banks: There is news of great relief for millions of customers having savings accounts in India. For a long time, people were troubled by the pressure and penalty of maintaining minimum balance, but now many big banks have abolished this rule.
According to the latest information, a total of 8 big public sector banks have completely removed the requirement of maintaining minimum balance on savings accounts. This means that now no matter how much money you keep in your account or whether you keep it at all, you will not be charged any fee.
Which banks are involved?
The banks that have removed this rule so far include State Bank of India (SBI), Union Bank of India, Bank of Baroda, Indian Bank, Canara Bank, Punjab National Bank (PNB), Bank of India and now Indian Overseas Bank (IOB).
1. Indian Overseas Bank (IOB)
The latest addition is Indian Overseas Bank. On September 30, 2025, IOB announced that the minimum balance requirement for SB-Public accounts would be completely removed from service effective October 1, 2025. However, premium accounts (such as HNI, Prime, Privilege, etc.) will not be eligible for this feature.
2. Bank of Baroda
Bank of Baroda has abolished this rule for all standard savings accounts from July 1, 2025. However, this exemption is not applicable to premium savings schemes.
3. Indian Bank
Indian Bank has completely removed minimum balance charges on all its savings accounts from July 7, 2025. Customers will no longer have to worry about balance shortages.
4. Canara Bank
Canara Bank had announced in May 2025 that the AMB rule would no longer apply to all its accounts, whether regular, salary, or NRI accounts.
5. Punjab National Bank (PNB)
PNB has also recently provided significant relief to its customers. Now, there will be no penalty for not maintaining a minimum balance in any savings account.
6. State Bank of India (SBI)
SBI made this major change in 2020. As the country’s largest bank, this move proved to be a relief for millions of customers.
7. Bank of India
Bank of India has also eliminated penalties for not maintaining a minimum balance. The bank said this step was taken in the best interests of customers and in light of the changing financial environment.
8. Union Bank of India
Union Bank recently removed the minimum balance requirement on all its general savings accounts, effective from the September 2025 quarter.
What is Minimum Balance
Banks require their customers to maintain a certain amount in their savings accounts, called a minimum balance. This amount varies from bank to bank. If the account holder fails to maintain this amount, the bank imposes a penalty.
How is Minimum Balance calculated?
Many people believe that maintaining a fixed amount daily is mandatory, but this is not true. Banks calculate this based on their monthly average balance (AMB). For example, if the bank has set a minimum balance of ₹10,000, the average monthly balance should be at least ₹10,000. This means that if you deposit ₹3 lakh into your account on the first of the month and maintain a zero balance on the remaining days, your average will still be above ₹10,000, and no penalty will be imposed.
Can the account be negative?
No. The Reserve Bank of India (RBI) has clearly instructed banks not to allow accounts to go into the negative. Therefore, even if the balance is zero, the bank will not put your account in the negative.
What are the benefits for customers?
Now, millions of customers will no longer have to worry about maintaining their account balance. Rural and low-income individuals will be able to open and manage savings accounts without worry. Students, pensioners, and customers with temporary incomes will benefit the most.
