Canara Bank scraps penalty on minimum average monthly balance for THESE accounts from June 1 onwards
State-run Canara Bank has announced the complete waiver of the average monthly balance (AMB) requirement across all savings bank account types, including savings accounts, salary accounts, NRI savings accounts and others.
Hence, no penalty will be charged for not maintaining the minimum balance requirement for all savings accounts from June 1, 2025 onwards.
The minimum average monthly balance is the lowest amount that must be maintained in a savings account throughout the month to avoid a penalty. Banks establish specific requirements depending on the type of account and the location of the branch.
Earlier, customers of Canara Bank were required to maintain a minimum average monthly balance based on their account type. Over failing to maintain a minimum average monthly balance, a penalty was charged.
" With this new policy, all Canara Bank SB account holders will now enjoy true "no penalty on minimum balance" for all SB accounts free from any AMB-related penalties or fees," the bank said in a statement.
Canara Bank aims to benefit millions of its customers, including salaried individuals, senior citizens, students, NRIs, and first-time users of banking services.
On Thursday, May 8, Canara Bank posted a 33.15 per cent year-on-year (YoY) growth in its standalone net profit to ₹ 5,002.66 crore for the quarter ended on March 31, 2025, as Mint reported earlier. The net profit of the bank stood at ₹ 3,757.23 crore for the January to March quarter in 2024.
For the quarter ended on March 31, 2025 the total interest income of the bank was ₹ 31,002.04 crore, up 7.62 per cent YoY against ₹ 28,807.35 crore.
Founded in 1906, Canara Bank has 9849 branches across the country, including 3139 in rural areas,2900 in semi-urban areas,1944 in urban regions, and 1866 in metro cities as of March 31, 2025. Additionally, the bank has 9579 ATMs, along with four overseas branches in London, New York, Dubai, and IBU Gift City.
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