New Delhi: Good news for bank customers! Several major public sector banks in India have scrapped the requirement to maintain an Average Monthly Balance (AMB) in savings accounts. This move comes as a big relief for account holders, especially those struggling to meet the minimum balance rules.
What is Average Monthly Balance (AMB)?
Average Monthly Balance (AMB) is the average amount you need to keep in your savings or current account every month. Banks calculate this at the end of each month. If your balance falls below the required AMB, the bank may charge a penalty. The exact penalty depends on the type of account you have.
Banks That Have Removed the AMB Requirement
Here’s a look at some major banks that have scrapped the Average Monthly Balance (AMB) rule:
– Bank of Baroda: From July 1, 2025, customers with standard savings accounts no longer need to maintain a minimum balance. No charges will be applied for falling short of the AMB. However, this waiver does not apply to Premium Savings Account holders.
– State Bank of India (SBI): SBI had already done away with the minimum balance requirement back in 2020 for all savings accounts. Customers aren’t charged any penalty for not maintaining a minimum balance.
– Indian Bank: Effective July 7, 2025, Indian Bank has completely waived the minimum balance requirement for all types of savings accounts.
– Canara Bank: Since May 2025, Canara Bank has removed the AMB requirement for all savings accounts, including regular savings, salary, and NRI accounts.
– Bank of India: Bank of India has also scrapped penalties for not maintaining a minimum balance in savings accounts. The move is aimed at offering more financial freedom and better value to customers.
– Punjab National Bank (PNB): PNB will no longer charge any penalty for not maintaining the Minimum Average Balance (MAB) in savings accounts. Earlier, the penalty amount depended on how much the account balance fell short of the required minimum.
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