Canara Bank Minimum Balance

Canara Bank Removes Penalty for Not Keeping Minimum Balance in Savings Accounts.

 

Canara Bank has announced a major change that will bring relief to millions of its customers. 

Starting from June 1, the bank will not charge any penalty if customers do not maintain the minimum balance in their savings bank accounts. 

This announcement was made by the bank in an official press release on Saturday 31.05.2025.

What Has Changed?

 

Earlier, customers were required to maintain a minimum average monthly balance (AMB) in their savings accounts.

 

The required balance amount depended on the type of account and the location (urban, semi-urban, or rural branch). 

 

If customers failed to maintain this balance, the bank used to charge a penalty or service fee.

 

But now, with this new rule, all Canara Bank savings account holders will not have to pay any penalty even if their balance goes below the minimum requirement. 

 

This means that all savings accounts are now free from any monthly balance conditions or related charges.

 

Who Will Benefit?

 

This move is expected to benefit a large number of customers, such as:

 

Salaried employees who may find it difficult to maintain balances during the end of the month

 

Senior citizens, who usually keep their funds in fixed deposits or use their savings accounts less

 

Students, who may not have regular income

 

NRIs (Non-Resident Indians), who maintain accounts in India but use them occasionally

 

New users, who are just starting to use banking services

 

 

With this step, Canara Bank aims to make banking more inclusive and customer-friendly.

 

Why Is This Important?

 

Removing the minimum balance penalty will encourage more people to open and use savings bank accounts, especially those in rural and semi-urban areas. 

 

It will also help customers manage their money without the fear of being charged unnecessarily.

 

This decision supports the goal of promoting financial inclusion, as more people can now enjoy basic banking services without worrying about maintaining a fixed balance.

 

In short, this is a positive and customer-friendly move by Canara Bank that makes savings accounts more affordable and accessible for everyone.