Starting 1st June 2025, Canara Bank has officially waived the Average Monthly Balance (AMB) requirement for all types of savings bank (SB) accounts, making them effectively zero balance accounts. This landmark decision means customers will no longer face penalties for not maintaining a specified minimum balance in their savings accounts.
Previously, customers were required to maintain a certain monthly average balance depending on the type of savings account and location of the branch. Non-maintenance attracted charges that were often a concern for students, pensioners, low-income individuals, and rural customers. With the new policy in effect, all savings account holders can now operate their accounts freely without worrying about AMB-related fees or restrictions.
KEY HIGHLIGHTS
- No AMB penalties across all Canara Bank savings account categories
- Zero balance facility for regular, salary, senior citizen, and pension accounts
- Enhanced financial freedom and flexibility for customers
- Supports financial inclusion, especially for economically weaker and rural sections
This customer-centric move aligns with the broader goal of inclusive banking, encouraging more people, especially from underserved areas, to engage with the formal banking system. It simplifies banking access and promotes account retention and financial literacy by eliminating a key barrier.
Canara Bank’s management stated, “We are committed to making banking easier, more affordable, and accessible to every Indian. Removing the AMB requirement is a step towards empowering customers and fostering a culture of savings without penalties.”
In addition to this waiver, the bank continues to provide a wide range of services such as digital banking facilities, debit cards, UPI, mobile and internet banking, and fund transfers, ensuring convenience and security for customers.
Financial experts believe this initiative could lead to a significant increase in account openings, especially from those previously hesitant due to minimum balance rules. It may also increase digital transactions and strengthen the banking habits of first-time account holders.
Customers are advised to visit the official Canara Bank website or their nearest branch for detailed information and any account-specific updates. With this move, Canara Bank reaffirms its commitment to building a more inclusive, accessible, and penalty-free banking environment for all.
