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 account.

It 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 maintained.

No more AMB in Canara Bank Savings Bank Account: From when is this applicable

The 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 release.

Depending 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 accounts.

What is Average Monthly Balance requirement in a savings bank account?

Average 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 account.