Saving Account Average Minimum Balance: Are you not able to keep a minimum balance in your savings account often? Troubled by bank penalty every month? So there is good news for you. 5 major public sector banks of India have now abolished the rules for maintaining average monthly balance (Amb). That is, now account holders will not have to worry about keeping minimum balance in the bank’s savings account. Nor will there be a fear of any kind of penalty.
Large public sector banks of the country are now moving towards providing better facilities to customers. Punjab National Bank, Canara Bank, Indian Bank, SBI had already abolished the rule of maintaining minimum balance on savings account. Now banks like Bank of Baroda have also joined this count. If your account is in any of these banks, you can now breathe a sigh of relief. Because even if the amount is reduced in the savings account, no charge will be deducted now
What is Amb?
Amb means the average monthly balance is the minimum average amount that the bank expects to maintain his account every month from the bank account holders. If customers are unable to maintain this amount, the bank collects a penalty. It depends on the quantity of the type and shortfall of the charge account.
Now know which banks have made changes?
Bank of Baroda (Bank of Baroda)
When the change is applicable: from 1 July 2025
Which accounts applied: All standard saving accounts will be applicable.
This discount will not be available on premium saving accounts.
Up to 1 lakh: 2.50%
Above 1,000 crores: 4.25%
Indian Bank (Indian Bank)
When the change is applicable: from 7 July 2025
Advantage: Minimum balance charges on all savings accounts are completely forgiven.
Now customers will not have to pay penalty on any kind of balance.
Canara Bank
When did the change apply: May 2025
Cover accounts:
Regular savings account
Salary account
NRI Saving Account
Less than Rs 50 lakh: 2.55%
Above Rs 2000 crore: 4.00%
Punjab National Bank (PNB)
PNB has ended the mandatory minimum balance in all savings accounts.
Earlier there used to be penalty on the basis of shortfall here
Less than Rs 10 lakh: 2.50%
Above Rs 100 crore: 2.70%
State Bank of India (SBI)
SBI abolished the condition of minimum balance in 2020 itself
This discount is applicable to all savings accounts
Now there is no penalty on maintaining a minimum balance on a savings account
What does this change mean for customers?
Now customers do not need to check the balance and maintain Amb every month.
Especially students, senior citizens and low income group people will get relief.
Customers will get freedom to invest the rest of the amount by keeping only the money required in a savings account.