Four major PSU banks—SBI, Canara Bank, Indian Bank, and Punjab National Bank—have announced they will no longer charge penalties for falling below the minimum average monthly balance (AMB). The move applies to all savings account categories.
SBI: Trailblazer in Fee Elimination
SBI removed AMB charges as early as 2020 across all savings accounts. This reform alone impacted over 44 crore customers, making it a landmark decision in Indian banking.
Canara Bank: Follows with May 2025 Waiver
Canara Bank waived AMB penalties in May 2025. The decision applies to regular, salary, and NRI savings accounts. It aims to make the bank more accessible and encourage deposits amid a competitive banking environment.
Indian Bank: To Implement From July 7
Indian Bank’s AMB waiver will take effect on July 7, 2025. Customers will no longer be charged penalties for lower balances in any category of savings accounts, boosting financial inclusion in southern and eastern India, where the bank has a strong footprint.
PNB: Effective July 1 With Inclusive Approach
PNB scrapped AMB charges starting July 1, 2025. The bank emphasized that this step will help women, farmers, and lower-income customers maintain accounts without penalty stress.
Also Read: RBI Bans Pre-Payment Charges on Floating-Rate Loans to Individuals
About State Bank of India (SBI)
Founded in 1806 as the Bank of Calcutta, SBI is India’s largest public sector bank and a Fortune 500 company. Headquartered in Mumbai, it has over 22,500 branches, 63,000+ ATMs, and serves over 500 million customers. SBI offers retail and corporate banking, digital services, insurance, investment products, and overseas banking through its global presence.
About Canara Bank
Established in 1906 in Mangalore, Canara Bank is one of India’s oldest nationalized banks. After its merger with Syndicate Bank in 2020, it became the fourth-largest PSU bank in India. Headquartered in Bengaluru, it operates nearly 10,000 branches and offers a wide range of services, including corporate banking, MSME lending, and global operations.
About Indian Bank
Incorporated in 1907 and headquartered in Chennai, Indian Bank is a leading PSU bank with a network of over 5,900 branches. After amalgamating with Allahabad Bank in 2020, it became the seventh-largest bank in India. The bank offers services in retail banking, corporate finance, digital banking, and financial inclusion.
About Punjab National Bank (PNB)
Founded in 1894 in Lahore, PNB is the second-largest public sector bank in India. Headquartered in New Delhi, it operates more than 10,000 branches across the country. The bank provides services in personal and corporate banking, including home and education loans, digital solutions, and financial literacy outreach programs.
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