Canara Bank Scraps Minimum Balance Requirement

Canara Bank has given a very good news to its customers. Yes, on June 1, Canara Bank announced that now the compulsion to maintain minimum balance in its savings accounts has been abolished. That is, if the customer does not have the minimum balance in his account, then no penalty will be charged.

This major decision marks a significant shift in customer-friendly banking. Canara Bank has taken a very important and relieving decision for its customers. Giving relief to all its customers on Sunday, the bank has announced to completely abolish the penalty for not maintaining the minimum balance in the savings account. Yes, this new rule of the bank has come into effect from June 1, 2025.

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Applicable to All Savings Accounts

Canara Bank has implemented this rule across all its savings accounts. This includes regular savings accounts, salary accounts, and even NRI accounts. Regardless of the type of account, no penalty will now be charged for not maintaining a minimum balance. The move has brought immense relief to a wide section of account holders who were often burdened by penalty deductions for minor shortfalls.

Canara Bank Becomes First Among Public Sector Banks

With this landmark decision, Canara Bank has become the first major public sector bank in India to offer ‘Zero Balance Savings Account’ facility to all customers without any minimum balance requirement. This is seen as a progressive step in improving customer convenience and promoting financial inclusion.

Official Announcement by the Bank

The bank itself shared this important update with the public through an official communication on the exchange. In its statement, the bank said:
“Feel the freedom, bank the difference. From June 1, 2025, there will be no penalty for not maintaining the minimum balance in Canara Bank.”

Feel the freedom, bank the difference.

Starting 1st June 2025, Canara Bank offers no penalty on non-maintenance of minimum balance.

Applicable to all Savings Bank Account holders!#CanaraBank #YourAccountYourFreedom #PenaltyWaiver pic.twitter.com/fAALUO80MZ

— Canara Bank (@canarabank) June 1, 2025

What Was the Earlier Rule?

Until now, Canara Bank account holders were required to maintain an Average Monthly Balance (AMB) as follows:

₹2000 for urban branches
₹1000 for semi-urban branches
₹500 for rural branches

Failing to maintain this balance attracted penalty charges. But under the new rule, these charges have been completely removed, regardless of the account category or location.

Who Will Benefit?

This decision is expected to benefit a large number of customers:

Students who often maintain low balances
Working professionals with fluctuating incomes
Senior citizens who prefer liquidity
NRIs who do not regularly deposit funds
New account holders starting with smaller deposits

This change not only enhances customer satisfaction but also encourages more people to open and use bank accounts without the worry of maintaining a fixed balance.

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Final Thoughts

With this move, Canara Bank has set a new benchmark for customer-oriented banking in the public sector. The complete removal of minimum balance penalties will undoubtedly attract new customers while offering peace of mind to existing ones. It remains to be seen whether other banks will follow Canara Bank’s lead, but for now, Canara’s customers can enjoy true zero-balance banking without fear of hidden charges.