Canara Bank removes minimum balance penalty for savings accounts

A rickshaw puller passes the Canara Bank branch in the old quarters of Delhi.
| Photo Credit: Reuters

BENGALURU

Canara Bank has announced the removal of charges for non-maintenance of minimum balance across all types of Savings Bank (SB) accounts, including regular, salary, and NRI accounts.

Effective June 1, 2025, the move makes Canara Bank the first major public sector bank to implement a blanket waiver on minimum balance penalties for all SB account categories.

Previously, account holders were required to maintain a specified Average Monthly Balance (AMB) or face penalties. With this policy change, such fees will no longer apply, offering more flexibility and financial relief to customers.

The bank confirmed the development in an official release.