Minimum Balance: Big Decision by Banks; Good News for Customers
Customers have long been troubled by the mandatory requirement of maintaining a minimum balance in their bank accounts. Earlier, there was no option to raise a complaint against this rule. However, banks themselves have now brought good news for customers. So, what’s the update?
Maintaining Minimum Balanc -Banks had made it mandatory for customers to maintain a certain monthly average minimum balance in their savings accounts. If the balance fell below the set limit, customers were penalized. This rule had become a major inconvenience for many, leading to dissatisfaction. As a result, many customers turned away from traditional banks—some opened accounts in post office banks, while others moved to cooperative societies.
The compulsory minimum balance requirement had left customers frustrated, with no platform to lodge a complaint. But now, banks have taken a customer-friendly approach and provided relief. Let’s understand the latest developments.
What Was the Issue?
Banks required a fixed minimum monthly average balance in savings accounts. Failing to maintain this balance would result in penalties. For ordinary customers, this rule was harsh. In private sector banks especially, the required minimum balance ranged from ₹1,000 to ₹10,000. If the balance wasn’t maintained, banks would charge fines. The government had been observing this burden on customers. But now, a few banks have relieved customers from this obligation.
Which Banks Have Waived the Minimum Balance Rule?
✅ Indian Bank
Indian Bank has removed the minimum balance requirement for all types of savings accounts. Customers will no longer be fined for failing to maintain the minimum balance. This new rule will be effective from 7th July 2025.
✅ SBI (State Bank of India)
SBI had already removed the mandatory minimum balance requirement back in 2020. This means, even if there is no specific minimum amount in your account, you will not be penalized.
✅ Canara Bank
In May 2025, Canara Bank eliminated the minimum balance condition for all types of savings accounts, including regular savings, salary accounts, and NRI savings accounts.
✅ PNB (Punjab National Bank)
PNB has also announced that the minimum balance rule is removed for all types of savings accounts. Now, customers won’t be penalized for not maintaining a set balance. There’s no need to maintain a fixed amount in the bank account anymore.
Impact
Thanks to the decisions of these four banks, distressed customers are now shifting away from private banks and closing their accounts there. This move is seen as a big relief, especially for low-income and rural customers who struggled to meet the previous requirements.
