Outlook Business Desk
Several public sector banks, including State Bank of India (SBI), Canara Bank, Bank of Baroda (BoB), Punjab National Bank (PNB), and Indian Bank, have waived penalties for not maintaining the Average Monthly Balance (AMB) in their savings accounts.
Average Monthly Balance (AMB) is the minimum amount a customer must maintain in their savings account each month. Falling below this limit attracts a penalty, which varies by account type and bank policy.
Bankers say that removing AMB penalties makes banking more accessible for low-income earners, students, and pensioners. It supports India’s financial inclusion goals by encouraging more people to keep their accounts active.
Bank of Baroda (BoB) has scrapped penalties for not maintaining the minimum balance in all standard savings accounts, effective from 1 July 2025. Previously, customers were subject to monthly penalties ranging from ₹50 to ₹200, depending on the account type and branch location. However, the waiver does not apply to premium savings account schemes.
Indian Bank has announced a complete waiver of minimum balance charges across all savings bank accounts, effective from 7 July 2025. The bank will also remove the minimum balance requirement for these accounts.
In May 2025, Canara Bank waived the Average Monthly Balance (AMB) requirement for all savings accounts, effective from 1 June 2025. Previously, customers were required to maintain a minimum balance based on their account type, and penalties were charged for any shortfall.
Punjab National Bank (PNB) has removed penalties for not maintaining the Minimum Average Balance in all savings accounts. The earlier rates varied based on account type and branch location — rural, semi-urban, urban, or metro. According to the bank’s website, penalties for non-maintenance ranged from ₹10 to ₹2,000, depending on the extent of the shortfall.
State Bank of India (SBI) removed the minimum balance requirement from all savings accounts in March 2020. Since then, customers are not charged any penalty for failing to maintain a minimum balance.