Minimum Balance Rules: Now rules regarding minimum balance have changed in these 7 banks, no penalty will be imposed

Minimum Balance Rules: The minimum balance is a big problem for the customers who have savings accounts in banks. However, now some banks have done away with the minimum balance problem for their customers. Union Bank of India has also been included in the list of such banks. Let us see the list of 7 such banks which have removed the requirement of maintaining Average Monthly Balance (AMB) in savings accounts.

Union Bank Of India

Union Bank of India has recently issued a press release informing about this. According to the release, the requirement of maintaining minimum balance in the bank’s general savings account has been abolished from the September quarter.

Bank of Baroda

Bank of Baroda has announced that from July 1, 2025, there will be no charges for not maintaining the minimum balance in all its standard savings accounts. However, this exemption will not apply to premium savings schemes.

Indian Bank

Indian Bank has also completely removed the minimum balance charge for all its savings accounts. This new facility has come into effect from 7 July 2025. Now customers will not have to worry about low balance.

Canara Bank

Canara Bank had announced in May 2025 itself that all its savings accounts will now be free from AMB rules, whether they are regular, salary accounts or NRI accounts. The bank has taken this step keeping in mind the convenience of the customers.

PNB

Punjab National Bank has also abolished the penalty for not maintaining minimum balance on all savings accounts. Earlier in PNB, penalty was imposed in proportion to the shortfall in balance, but now this will not happen.

SBI

The country’s largest bank SBI has already removed the minimum balance rule for all savings accounts from 2020. Here too, no charge is levied if the balance is low.

Bank of India

The Bank of India has also abolished the penalty imposed on minimum balance. The bank had also issued a press release to inform about this. According to the release, the purpose of these changes is to work according to the market conditions, strengthen the financial position of the bank and provide more benefits to all types of customers.

What is minimum balance?

Many banks require the account to have a minimum balance. If the balance is less than this, some penalty is imposed by the banks. This charge may vary for different banks.

People get stuck in the minimum balance

Many people often get trapped in the minimum balance issue. The main reason for this is that people do not know how it is actually calculated. The bank uses a special method for its calculation, if you also know it, then no bank will be able to impose a penalty on you.

Know how the calculation is done

There is a big confusion in the minds of many people about how the minimum balance is calculated. Many people think that the minimum balance has to be maintained every day. Here let us tell you that the minimum balance is not calculated on a daily basis, but on a monthly basis. Every day the average money in your account should be as much as or more than the minimum balance.

Let us understand with an example

Suppose your bank has set the minimum balance limit at Rs 10,000. In such a situation, it is not necessary to maintain a limit of Rs 10,000 every day to maintain the minimum balance, but you have to average it. That is, if you keep Rs 3 lakh in your account for the whole day on the first date, then your daily average in that month comes out to be Rs 10,000 and no penalty will be imposed on you.

Can the account go into negative?

Have you ever thought that if all the money is withdrawn from such accounts and the bank imposes a penalty, then your balance will become negative. Actually, this does not happen. The Reserve Bank of India has instructed the banks to ensure that no account goes into the negative. For this, the central bank has also taken several measures.

Banks earn a lot from minimum balance

Although everyone thinks that all the banks earn from interest, but very few people know that banks also earn a lot from minimum balance penalty. A report came in 2024, according to which in the financial year 2023-24, 11 government banks earned Rs 2331 crore from minimum balance penalty. From 2021-2024 i.e. in 3 years, these banks earned a total of Rs 5614 crore from minimum balance penalty.

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