Latest news with #CanaraBank
Hans India
6 hours ago
- Business
- Hans India
Canara Bank removes minimum balance requirement for all savings accounts
In a customer-friendly move, the Canara Bank on Sunday officially scrapped the penalty for not maintaining a minimum balance in savings accounts starting June 1. With this decision, customers holding any type of savings account with Canara Bank will no longer be charged or penalised for failing to maintain a minimum balance. The new rule is applicable across all categories of savings accounts. Canara Bank has become the first major public sector bank to eliminate the minimum balance requirement across the board. This means account holders can now maintain a zero balance in their savings accounts without incurring any fees. This move is expected to benefit millions of savings account holders, allowing them to utilise their entire account balance freely for transactions, without worrying about penalties. "From June 1, 2025, Canara Bank will not impose any penalty for non-maintenance of minimum balance. This applies to all savings account holders,' the bank said in a statement on social media platform X. 'With this new policy, all Canara Bank savings bank account holders will now enjoy true 'no penalty on minimum balance' for all savings bank accounts free from any average monthly balance-related penalties or fees,' it said. Previously, Canara Bank required customers to maintain a minimum balance of Rs 2,000 in urban areas, Rs 1,000 in semi-urban areas, and Rs 500 in rural areas. Failure to meet these thresholds would result in penalties. This change is set to benefit a wide range of customers, including students, women, senior citizens, and individuals from low-income groups. Canara Bank is one of India's largest public sector banks. In the March quarter (Q4) of FY25, the bank reported an income of Rs 31,496 crore and a profit of Rs 5,111 crore. For the full financial year, the bank's total income stood at Rs 1.21 lakh crore in FY25, with a net profit of Rs 17,692 crore.
News18
6 hours ago
- Business
- News18
No Charges On Zero Balance: This PSU Bank Removes Minimum Balance Rule From June 1
Last Updated: Canara Bank levied charges if the minimum average monthly balance (AMB) is not maintained in a savings account like other public and private lenders. Canara Bank has brought significant relief to its savings account holders by eliminating the average monthly balance (AMB) requirement for all types of savings bank accounts. First Major Public Sector Bank to Remove AMB Charges With this decision, Canara Bank becomes the first major public sector bank to abolish AMB-related penalties, allowing all savings account holders to maintain a zero balance without incurring any penalties. This initiative aims to enhance financial inclusion and improve customer convenience. Accounts Benefited by the Waiver The complete waiver will benefit various account holders, including those with savings accounts, salary accounts, and NRI SB accounts. Implementation Date and Statement Starting June 1, 2025, Canara Bank will establish itself as a leading public sector bank offering genuine no-penalty minimum balance requirements across a variety of savings bank accounts. This ensures that no savings bank customer will face charges for not maintaining a minimum balance in their accounts, as stated by the bank on Saturday. Previously, customers had to maintain a minimum average monthly balance depending on their account type, failing which they incurred penalty charges. The new policy will allow all Canara Bank savings account holders to enjoy a true no-penalty policy for not maintaining a minimum balance. To maintain an active savings account, account holders are required to adhere to a minimum balance based on the branch category. The Average Monthly Balance (AMB) varies according to the location of the branch — Rs. 2,000 for Urban/Metro branches, Rs. 1,000 for Semi-Urban branches, and Rs. 500 for Rural branches. This move is expected to benefit millions of Canara Bank customers, including salaried individuals, senior citizens, students, NRIs, and first-time banking service users, facilitating everyday banking without penalties. What Were The Charges For Not Keeping The Minimum Amount? Canara Bank levies charges if the minimum average monthly balance (AMB) is not maintained in a savings account. The charges differ based on the type of branch—metro, urban, semi-urban, or rural. For metro and urban branches, customers are required to maintain an AMB of Rs 2,000. If the balance falls between Rs 1,999 and Rs 1,500, a charge of Rs 25 plus GST is applicable. If the AMB is between Rs 1,499 and Rs 1,000, the penalty increases to Rs 35 plus GST. For balances below Rs 1,000, a higher charge of Rs 45 plus GST is levied. In semi-urban branches, the required AMB is Rs 1,000. If the AMB lies between Rs 999 and Rs 700, a fee of Rs 25 plus GST is charged. For balances ranging from Rs 699 to Rs 400, the penalty is Rs 35 plus GST. If the average monthly balance drops below Rs 400, Canara Bank charges Rs 45 plus GST.
Mint
10 hours ago
- Business
- Mint
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.
Time of India
13 hours ago
- Business
- Time of India
'No penalty on non-maintenance': Canara Bank waives minimum balance rule on all savings accounts
NEW DELHI: Canara Bank has announced that it will no longer require savings account holders to maintain a minimum balance, in a big relief for customers. Starting June 1, 2025, all types of savings bank (SB) accounts, including regular, salary, and NRI accounts, will have zero penalty for not maintaining the Average Monthly Balance (AMB). Sharing a post on X, the bank said, "Feel the freedom, bank the difference. Starting 1st June 2025, Canara Bank offers no penalty on non-maintenance of minimum balance. Applicable to all Savings Bank Account holders!" With this move, Canara Bank becomes the first major public sector bank to offer true zero-balance savings accounts across the board. Starting June 1, 2025, Canara Bank customers will no longer face penalties for not maintaining the minimum balance in their savings accounts. The bank earlier announced this major update in a press release issued on Saturday. "With this new policy, all Canara Bank savings bank account holders will now enjoy true "no penalty on minimum balance" for all savings bank accounts free from any average monthly balance-related penalties or fees," the bank added. Previously, customers had to maintain an AMB of Rs 2,000 in urban branches, Rs 1,000 in semi-urban branches, and Rs 500 in rural branches, failing which penalty charges were applied. The new policy removes all such charges, making banking more inclusive and accessible. The change is expected to benefit millions, including salaried employees, senior citizens, students, NRIs, and new account holders, making everyday banking easier and penalty-free. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
a day ago
- Business
- Time of India
No more penalty for low balance in bank account: Canara Bank ends minimum balance rule on all savings accounts from this date
No more AMB in Canara Bank Savings Bank Account: From when is this applicable Live Events What is the minimum balance that must be maintained in Canara Bank savings account? What is Average Monthly Balance requirement in a savings bank account? Metro/Urban Branch: Charges of non-maintenance of minimum balance AMB maintained in the account against the stipulated ₹ 2000/- Charges per month for violation of AMB ₹ 1999/- to ₹ 1500/- ₹ 25/-+GST ₹ 1499/- to ₹ 1000/- ₹ 35/-+GST ₹ 999/- and below. ₹ 45/-+GST Semi Urban Branches: Charges of non-maintenance of minimum balance AMB maintained in the account against the stipulated ₹ 1000/- Charges per month for violation of AMB ₹ 999/- to ₹ 700/- ₹ 25/-+GST ₹ 699/- to ₹ 400/- ₹ 35/-+GST ₹ 399/- and below ₹ 45/-+GST Latest Canara Bank savings account interest rates . Slabs ROI(%) 1 For outstanding Balance of less than Rs. 50 Lakh 2.7 2 For outstanding Balance of Rs. 50 Lakh to less than Rs 5 Cr 2.75 3 For outstanding Balance of Rs. 5 Cr to less than Rs 10 Cr 2.8 4 For outstanding Balance of Rs. 10 Cr to less than Rs 100 Cr 3.05 5 For outstanding Balance of Rs. 100 Cr to less than Rs 200 Cr 3.5 6 For outstanding Balance of Rs. 200 Cr to less than Rs 300 Cr 3.1 7 For outstanding Balance of Rs. 300 Cr to less than Rs 500 Cr 3.1 8 For outstanding Balance of Rs. 500 Cr to less than Rs 1000 Cr 3.4 9 For outstanding Balance of Rs. 1000 Cr & less than Rs. 2000 Cr 3.55 10 For outstanding Balance of Rs. 2000 Cr & above 4 In a customer-friendly move, Canara Bank has announced a waiver of the Average Monthly Balance (AMB) requirement across all types of savings bank accounts, including regular savings accounts, salary accounts, and NRI savings accounts. The announcement has been made today via a bank's press release. Due to no requirement of maintaining Average Monthly Balance (AMB), there are no penalty charges if AMB is not maintained in the bank is important to note that State Bank of India (SBI) since 2020 has waived off the requirement for maintaining minimum balance in all their savings accounts. Hence, there is no penalty if the minimum balance in the savings account is not new rule will be applicable from June 1, 2025, i.e., from tomorrow.'Starting June 1, 2025, no Canara Bank savings account holder will be penalized for not maintaining a minimum balance in their account. This marks a shift towards offering truly zero balance savings accounts for all customers,' said the bank in the press on the kind of savings account, bank customers were required to maintain a minimum Average Monthly Balance in their bank account. Penalty is levied by a bank if the bank customer fails to maintain the minimum average balance requirement. Every Canara Bank savings bank account user will now benefit from no penalty on minimum balance for all savings bank Average Monthly Balance (AMB) requirement in Canara Bank varies based on the branch location. Bank customers were required to maintain an AMB of Rs 2,000 for urban and metro branches, Rs 1,000 for Semi-Urban branches, and Rs 500 for rural Monthly Balance (AMB) is the minimum balance that must be kept in the bank account by a customer. If the bank account balance falls below the required balance, then banks levy a penalty for not maintaining AMB. The penalty depends on the type of savings are the charges that Canara Bank account holders were required to pay if minimum balance is not maintained in the bank account till May 31, Bank offers a savings account interest rate between 2.7 and 4% depending on the balance of the savings account. The rates are effective from May 19, Bank website
