🏦 Minimum Balance Requirement Removed by Indian Banks in 2025 — Full List, Waiver Dates & Benefits
[Updated: July 9, 2025]
In a major update for bank account holders, several top public sector banks in India have removed the Minimum Balance Requirement (AMB) from savings accounts, allowing customers to maintain zero balance without facing penalties. This move marks a significant shift in India’s retail banking policies, boosting financial inclusion and customer satisfaction.
🔑 Key Takeaway:
Minimum Balance Requirement Removed in 2025 by major banks including Bank of Baroda, Canara Bank, Indian Bank, and Punjab National Bank. This means no more penalty fees for low account balance in regular savings accounts.
🔍 What Is the Minimum Balance or AMB Requirement?
Average Monthly Balance (AMB), often called minimum balance, is the average closing balance that customers must maintain in their account each month. Falling short often triggers penalty fees, which can range from ₹100 to ₹600 per month.
✅ Full List of Banks That Removed Minimum Balance Requirement in 2025
| 🏦 Bank Name | 📅 Effective Date | 🔄 Waiver Summary |
|---|---|---|
| Bank of Baroda | July 1, 2025 | Removed Average Monthly Balance (AMB) charges for standard savings accounts. |
| Canara Bank | May 2025 | Waived AMB for all savings, salary, and NRI accounts. |
| Indian Bank | July 7, 2025 | Complete waiver of AMB for all savings account types. |
| Punjab National Bank | July 1, 2025 | No AMB fees. Focus on inclusion for women, farmers, and low-income groups. |
| Bank of India | 2025 | Introduced waiver to enhance banking flexibility and ease.. |
| State Bank of India | March 2020 | First Indian bank to permanently eliminate minimum balance requirement. |
💬 Bank-Wise Highlights: AMB Waiver Details
🔷 Bank of Baroda (BoB)
As of July 1, 2025, Bank of Baroda has scrapped AMB charges for all standard savings accounts.However, premium savings schemes are not included.
🔷 Canara Bank
From May 2025, Canara Bank removed AMB penalties across all savings account categories, including salary and NRI customers.
🔷 Indian Bank
As of July 7, 2025, Indian Bank introduced a full waiver on AMB for all retail savings accounts, giving customers greater banking freedom.
🔷 Punjab National Bank (PNB)
Effective July 1, 2025, PNB ended AMB-related penalties for savings accounts. The bank aims to empower women, rural households, and underbanked groups.
🔷 Bank of India
Bank of India also removed AMB fees in 2025, stating that the decision reflects its customer-first banking approach.
🔷 State Bank of India (SBI)
SBI was the first mover, waiving minimum balance rules back in March 2020. The move led to a surge in new account openings, especially in rural areas.
🧠 Why Did Banks Remove the Minimum Balance Rule?
| 💡 Reason | ✅ Benefit to Customers |
|---|---|
| Push for financial inclusion | Easier access for rural & underbanked communities |
| Rise in zero-balance demand | Consumers prefer accounts with no penalties |
| Digital banking competition | Neobanks and fintechs offer zero-balance accounts |
| Reduce customer churn | Less frustration from penalty charges |
| Support from RBI & policymakers | Encouragement for simplified, accessible banking |
📈 Benefits of Zero-Balance Savings Accounts
- 💰 No Penalty Charges – Avoid monthly fees for low balances
- 🧒 Student & Rural Access – Ideal for students, farmers, gig workers
- 📲 Digital Banking Ready – Smooth integration with UPI and mobile apps
- 🌐 Financial Empowerment – Encourages financial literacy and savings habits
- 🏦 Customer-Centric Banking – Banks compete to offer better user experience
🔎 Related Searches People Use on Bing
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- PNB zero balance account news
- Indian Bank no AMB charges July
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❓ Frequently Asked Questions (FAQs)
🔹 Has the minimum balance requirement been removed in India?
✅ Yes, major public sector banks have removed the minimum balance requirement in 2025 for most savings accounts.
🔹 Can I open a zero-balance account now?
✅ Absolutely. You can open zero-balance savings accounts in BoB, Canara Bank, Indian Bank, and others without facing AMB penalties.
🔹 Do NRI accounts also get this waiver?
🔸 Some banks like Canara Bank extended the waiver to NRI savings accounts, but others (e.g., BoB) excluded premium and NRI tiers.
🔹 Is this applicable to private banks?
🔸 No. The current waivers apply to public sector banks only. Note: Private sector banks may still impose AMB charges unless explicitly waived.
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