Five major public sector banks in India have abolished the minimum average balance (AMB) requirement for their savings account holders.
This means customers will no longer face penalties for not maintaining a minimum balance in their accounts. These banks include Bank of Baroda, State Bank of India, Canara Bank, Indian Bank, and Punjab National Bank. This initiative aims to make banking services more accessible, especially for low-income individuals and those in rural areas.
This change has brought significant relief to customers and marks a crucial step towards financial inclusion. Bank of Baroda implemented this rule from July 1, 2025, State Bank of India from 2020, Canara Bank from May 2025, Indian Bank from July 7, 2025, and Punjab National Bank from July 1, 2025. Bank of India has also waived penalties for not maintaining a minimum balance in savings accounts, providing greater financial freedom to its customers.