New Delhi: Public sector lender Canara Bank has announced a major relief for its customers by removing the requirement to maintain a minimum balance in savings accounts. The new rule comes into effect from June 1.

In a significant move, the bank declared that customers holding savings accounts, salary accounts, and NRI SB accounts will no longer be required to maintain a minimum average monthly balance. The bank has also waived the penalty that was previously charged for not maintaining the minimum balance.

Canara Bank confirmed in its official statement that all types of SB account holders are now exempt from penalties related to non-maintenance of minimum balance.

Earlier, Canara Bank customers were required to maintain a minimum average balance of Rs 1,000 per month, depending on the type of account. Failing to do so would attract penalties. With this new decision, customers can now operate their savings accounts without worrying about maintaining a minimum amount.