These Major Banks Including BOI, BOB, Indian Bank & More Remove Minimum Balance Rules for Savings Accounts

Several major public sector banks have removed the requirement of maintaining a minimum balance in savings accounts, waiving penalties tied to Average Monthly Balance, or AMB. This brings much-needed flexibility to savings account holders, especially low-income and rural customers.

Banks like Punjab National Bank, Bank of Baroda, Bank of India, Indian Bank, Canara Bank, and others have either fully or partially removed minimum balance requirements across a wide range of savings account types, making zero balance savings accounts more accessible.

List of Banks That Have Removed Minimum Balance Rules

Indian Bank

Effective July 7, 2025, Indian Bank has eliminated the minimum balance requirement across all savings bank accounts, making banking more inclusive and accessible.

Bank of Baroda

From July 1, 2025, Bank of Baroda has waived charges for non-maintenance of minimum balance in all standard savings accounts. However, this benefit does not apply to premium savings account schemes.

Canara Bank

In May 2025, Canara Bank waived the AMB requirement for all savings bank accounts, including regular savings accounts, salary accounts, and NRI savings accounts.

State Bank of India

SBI, India's largest public sector bank, has been a pioneer in this space, having waived off the minimum balance requirement for all savings accounts since 2020. This means no penalty is charged if the balance in the account falls below a certain threshold, making SBI one of the earliest adopters of the zero balance savings account model for the masses.

Punjab National Bank

PNB has also announced that it will no longer charge penalties for non-maintenance of minimum balance across all types of savings accounts. Previously, the penalty was based on the percentage of the shortfall.

Bank of India

Bank of India has joined the list of public sector banks offering zero balance savings account facilities, removing penalties on non-maintenance of AMB for most account types.

What Is Average Monthly Balance?

The Average Monthly Balance (AMB) is the minimum average amount a customer is expected to maintain in their savings account each month. If the balance falls below this threshold, banks typically levy a penalty, often linked to the degree of the shortfall. However, with the new rule changes, no such charges will apply across many bank accounts.