In a move that puts the customer first, Canara Bank has officially announced that it will waive the penalty on minimum average monthly balance (MAB) requirements for all savings accounts starting June 1, 2025. This marks a major shift in banking accessibility and inclusivity, benefiting millions of customers across India and abroad.
For years, most banks have enforced a minimum balance rule—meaning account holders were required to maintain a certain amount of money each month to avoid penalties. For many people, especially students, first-time earners, retirees, and low-income households, this became a source of stress.
Now, Canara Bank is removing this barrier entirely. Whether you're a college student saving up for the future, a senior managing monthly expenses, or a Non-Resident Indian (NRI) looking for a reliable savings option, this change allows more flexibility and freedom without the fear of being penalized.
This waiver is not just about removing a rule—it’s about recognizing the realities of modern banking and the needs of a diverse customer base.
By scrapping the penalty for MAB, Canara Bank is taking a pro-consumer approach—making savings accounts easier to maintain and more inclusive.
Canara Bank’s move comes at a time when digital banking is booming, but trust in traditional institutions still holds great value. By eliminating penalties tied to minimum balances, the bank is enabling more people to open and use savings accounts without worrying about hidden fees or constraints.
This decision could lead to:
From June 1, 2025, all Canara Bank savings account holders will automatically benefit from this change—no forms to fill, no applications to submit. The waiver applies across all customer segments, including domestic residents, senior citizens, students, salaried employees, and NRIs.
That means:
Banking experts and financial advisors are applauding this customer-first policy. “This is a big win for inclusive banking,” said a senior financial analyst. “It sets a standard that other banks may soon follow. It’s not just about removing a charge—it’s about removing a psychological barrier.”
As the banking sector grows more competitive with fintech and digital wallets on the rise, traditional banks must innovate to stay relevant. Canara Bank’s decision shows that it listens to customer needs and is ready to adapt. This customer-centric approach could attract new users who value simplicity and transparency in banking.
Banking should empower, not penalize. With this initiative, Canara Bank is paving the way for a more financially inclusive future. Whether you’re opening your first savings account or maintaining one from overseas, this change makes saving simpler and smarter.
No more worrying about falling below a threshold. Just focus on saving what you can—when you can.