Banking System: Now there will be no penalty for not maintaining minimum balance in two government banks
PNB and Indian Bank have removed minimum balance charges in their savings accounts. Now small businessmen, students, senior citizens and rural people will be able to avail banking services without penalty. This will increase the number of people connected to the banking system.
New Delhi. Indian Bank has completely removed minimum balance charges in all its savings bank accounts from July 7. That is, now even if a customer does not have the prescribed balance in his account, there will be no penalty on him. Similarly, Punjab National Bank (PNB) has also removed the penalty charge for not maintaining minimum average balance (MAB) in all savings accounts from July 1.
Indian Bank says that the purpose of this decision is to connect more and more people to the banking system. Now small businessmen, students, senior citizens and people living in villages will also be able to easily avail banking services, without worrying about any balance. This will also benefit those people who were away from the banking system till now.
How much was the charge earlier?
Indian Bank earlier had a minimum balance requirement of Rs 500-1,000 in rural areas, Rs 1,000-2,000 in semi-urban areas, and Rs 2,000-5,000 in urban/metro areas. Non-maintenance of balance attracted a penalty of Rs 50 to Rs 600. This penalty was applicable based on the monthly or quarterly average balance. There was no penalty on Basic Savings Bank Deposit Accounts (BSBDA) and Jan Dhan accounts.
Apart from this, Indian Bank has given another relief. That is, the bank has reduced the interest rate on its one-year loan by 0.05 percent. Earlier this rate was 9.05 percent, which has now come down to 9 percent. This change will come into effect from July 3, 2025. This will directly benefit those customers who have taken home loan, car loan or personal loan from the bank, because now they will have to pay less interest.
What was the fee in PNB earlier
Earlier in Punjab National Bank (PNB), a balance of Rs 500-1,000 was required in rural areas, Rs 1,000-2,000 in semi-urban, and Rs 2,000-10,000 in urban / metro. The penalty ranged from Rs 50 (rural) to Rs 600 (urban), which was levied based on the monthly average balance. There was no charge on zero-balance accounts (like PNB Rakshak or Basic accounts). From October 1, 2024, PNB had changed the quarterly to monthly, which increased the burden of penalty. On the other hand, PNB said that the purpose of this decision is to provide convenience especially to those sections which come in priority segments, such as women, farmers and low-income families. Now they will not have the stress of maintaining minimum balance and they will be able to easily connect with the bank’s services. Bank MD and CEO Ashok Chandra said that removing these charges will reduce the financial pressure on the customers and they will become a part of the banking system more actively.
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