Banking Rules- Big news for bank account holders. Now you will not have to pay penalty even if you do not maintain minimum balance in your bank account, because many big government banks of the country have abolished this rule. Now you can run your savings account (Zero Balance Savings Accounts) even on zero balance without fear of any penalty.
This move is especially a relief for those who come from small towns, villages or low-income families, and for whom it is difficult to maintain a fixed amount every month.
On which accounts there is no need to maintain a balance?
According to the rules of the Reserve Bank of India (RBI), there is already no requirement of any minimum balance on accounts opened under Basic Savings Bank Deposit Account (BSBD) and Pradhan Mantri Jan Dhan Yojana (PMJDY). But now some big government banks have removed this condition even on normal savings accounts. Let us know about these banks.
These banks no longer require minimum balance
1. State Bank of India (SBI)
The country’s largest bank SBI had already started this facility in 2020. Now there is no need to maintain any minimum balance on all its savings accounts.
2.Punjab National Bank (PNB)
PNB has completely removed the penalty for not maintaining the minimum average balance on all savings accounts from July 1, 2025. The bank says that this will especially benefit women, farmers and low-income families. Now these account holders will not have to worry about maintaining the balance in their account.
3. Bank of Baroda
Bank of Baroda has provided zero balance facility on its normal savings account from 1 July 2025. That is, now even if there is no money in your account, the bank will not charge a penalty. However, this rule is applicable only on standard savings accounts, not on premium accounts.
4. Indian Bank
Indian Bank has completely abolished the condition of minimum balance on all savings accounts from 7 July 2025. The bank says that its aim is to make banking more accessible and easy for the common people. This will directly benefit students, elderly, small businessmen and customers from rural areas.
5. Canara Bank
Canara Bank has removed the requirement of Average Monthly Balance (AMB) from all its savings, salary and NRI accounts from June 2025. Earlier, every customer had to maintain a fixed amount in the account for the entire month according to his account type, otherwise the bank used to charge a penalty. Now this will not happen. Customers can keep as much balance as they want in their account.
What is average monthly balance?
Average Monthly Balance (AMB) is the minimum amount that is required to be maintained in the account for a month. If this balance falls below the prescribed limit, the bank charges a penalty from the customer. But now, in the banks which have removed this rule, customers will not have this tension.