No More Minimum Balance Stress—This Bank Has Just Made Saving Easier for Everyone

In a move that’s sure to bring relief to millions of bank customers, Canara Bank has announced a customer-first decision that eliminates the need to maintain a minimum balance in any of its savings bank accounts. Starting June 1, 2025, this new policy applies across the board—whether you hold a regular savings account, a salary account, or even an NRI account.

While many banks are tightening rules this month by imposing steep penalties on customers who fail to maintain an average monthly balance (AMB), Canara Bank has chosen a different path—prioritizing customer convenience and financial freedom.

No More Penalties for Low Balances

Previously, customers with Canara Bank were required to maintain a minimum monthly balance based on their account location:

₹2,000 for accounts in urban and metro branches

₹1,000 for semi-urban branches

₹500 for rural branches

Failing to meet these thresholds often led to penalty charges—a common frustration for many customers, especially students, senior citizens, and low-income earners. But with this new change, those worries are officially a thing of the past.

Whether your account balance dips to zero or stays low for a while, you will no longer be penalized. This zero-balance feature brings much-needed flexibility to all kinds of users, allowing them to manage their money without stress or hidden charges.

What Is AMB and Why It Matters

The Average Monthly Balance (AMB) is calculated by averaging the closing balances in a savings account over a calendar month. Most banks use this figure to assess whether customers are maintaining the required minimum balance—and if not, they charge fees accordingly.

Canara Bank’s decision to completely scrap AMB-related penalties is not just a policy update—it’s a strong step toward more inclusive and accessible banking. By removing this condition for all categories of savings accounts, the bank is setting a new benchmark in the public banking sector.

Who Benefits the Most?

This change is expected to significantly benefit a wide range of customers:

Salaried professionals who use their accounts primarily for monthly transactions

Students managing limited funds

Senior citizens on fixed incomes

NRIs who may not keep regular inflows in Indian accounts

And everyday individuals who prefer to keep their savings fluid

The bank’s focus is clearly on creating a hassle-free banking experience while also promoting financial inclusion, especially in areas where banking access is still growing.

Established in 1906 in Mangalore by Ammembal Subba Rao Pai, Canara Bank is one of India’s oldest and most respected public sector banks. As of March 31, 2025, it operates a vast network of 9,849 branches across India—3,139 of which are in rural areas—and manages 9,579 ATMs. The bank also maintains an international presence with branches in London, New York, Dubai, and the financial hub of GIFT City.

With this customer-friendly reform, Canara Bank becomes the first major public sector bank in India to remove the minimum balance requirement across all savings accounts. While private banks often make similar moves to attract users, it’s rare to see a public sector bank lead such an initiative.