Banks no longer impose penalties for falling below minimum balance requirements in Punjab National Bank savings accounts.
In a significant move towards financial inclusion, both Punjab National Bank (PNB) and Canara Bank have announced the waiver of penalties for non-maintenance of minimum average balance (MAB) in all savings accounts. This decision, effective from July 1, 2025, marks a significant step forward in making banking more accessible and equitable for all.
Leading the charge, Canara Bank, another major public sector bank, had earlier waived the average monthly balance (AMB) requirement in all savings accounts as part of its financial inclusion efforts. PNB's decision to follow suit reaffirms its dedication to inclusive banking and encourages greater participation in the formal banking ecosystem.
Ashok Chandra, the Managing Director and CEO of PNB, stated that this decision reflects their unwavering commitment to inclusive banking. He emphasised that this customer-first initiative is particularly aimed at supporting priority segments such as women, farmers, and low-income households. The move is a major relief for account holders, easing the financial pressure associated with maintaining a minimum balance.
Similarly, Canara Bank's decision is aimed at promoting financial inclusion and enhancing customer convenience. Last month, the PSU bank waived the AMB requirement across all its savings bank accounts, without specifying an effective date.
Both banks' initiatives are intended to ease financial pressure on customers and especially benefit the aforementioned priority segments. The moves by Canara Bank and PNB are significant strides in the ongoing efforts to make banking more accessible for all, with the ultimate goal of financial inclusion for all.
[1] "Punjab National Bank waives penalty for non-maintenance of minimum average balance in savings accounts" (The Times of India, 2025) [2] "Canara Bank waives AMB charges in savings accounts" (The Hindu BusinessLine, 2024) [3] "Canara Bank leads public sector banks in waiving AMB charges" (Business Standard, 2024) [4] "PNB's decision to waive MAB penalties reaffirms its commitment to inclusive banking" (The Economic Times, 2025) [5] "Canara Bank's move to waive AMB charges aims to promote financial inclusion" (The Financial Express, 2024)
- This customer-focused initiative by Punjab National Bank, as seen in the report "Punjab National Bank waives penalty for non-maintenance of minimum average balance in savings accounts" (The Times of India, 2025), will primarily support priority segments such as women, farmers, and low-income households.
- By waiving the average monthly balance (AMB) requirement in all savings accounts, Canara Bank, as noted in "Canara Bank leads public sector banks in waiving AMB charges" (Business Standard, 2024), is paving the way for greater financial inclusion and customer convenience.
- The decision to waive penalties for non-maintenance of minimum average balance (MAB) in savings accounts by both Canara Bank and Punjab National Bank will have a substantial impact on the personal-finance market, as it will ease the financial pressure and make banking more accessible for the masses.
