Canara Bank Removes Minimum Balance Rule for All Savings Accounts – Zero Balance Banking from June 2025

🏦 Canara Bank Abolishes Minimum Balance Requirement for All Savings Accounts

Effective June 1, 2025, Canara Bank has eliminated the Average Monthly Balance (AMB) requirement across all its savings accounts, including regular, salary, and NRI accounts.

📌 Key Highlights

• Zero-Balance Facility: Customers can now maintain a zero balance without incurring any penalties.
• Inclusive Policy: This change applies to all categories of savings accounts.
• First in Public Sector: Canara Bank is the first major public sector bank to implement this policy.

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🔍 Why This News Is Important

✅ Promoting Financial Inclusion

By removing the AMB requirement, Canara Bank is making banking more accessible, especially for students, senior citizens, and individuals from low-income groups. This move encourages financial inclusion by allowing a broader segment of the population to engage with formal banking services without the burden of maintaining a minimum balance.

✅ Customer-Centric Approach

This policy shift reflects a customer-first approach, aiming to reduce financial stress for account holders. It aligns with the government’s vision of promoting a less-cash economy and encouraging digital transactions, as individuals can now use their savings accounts more freely.

✅ Industry Benchmark

As the first major public sector bank to abolish the AMB requirement, Canara Bank sets a precedent for other banks to follow. This could lead to a broader industry-wide change, potentially benefiting millions of customers across the country.

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🕰️ Historical Context

Historically, banks have imposed AMB requirements to ensure liquidity and reduce operational costs. However, these requirements often posed challenges for individuals with irregular income streams. Recognizing these challenges, some private sector banks have already eliminated AMB requirements. Canara Bank’s recent decision marks a significant step in aligning public sector banking practices with evolving customer needs and financial inclusion goals.

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📝 Key Takeaways from “Canara Bank Removes Minimum Balance Requirement for All Savings Accounts”

FAQs: Frequently Asked Questions

1. What is the new policy introduced by Canara Bank regarding savings accounts?
Canara Bank has removed the minimum balance requirement for all types of savings bank accounts, effective from June 1, 2025.

2. Which types of accounts are affected by this change?
The policy applies to all savings accounts, including regular savings accounts, salary accounts, and Non-Resident Indian (NRI) accounts.

3. Were there any penalties for not maintaining the minimum balance before this policy?
Yes, earlier customers were charged penalties ranging between ₹25 to ₹45 per month plus GST if the minimum balance was not maintained.

4. How does this change promote financial inclusion?
By removing minimum balance requirements, it allows people from lower-income groups, students, and senior citizens easier access to banking services without worrying about penalties.

5. Is Canara Bank the first bank to remove minimum balance requirements?
Canara Bank is the first major public sector bank to remove minimum balance requirements, though some private banks had already implemented similar policies.

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