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Canara Bank Waives Minimum Balance Requirement for All Savings Accounts
June 1, 2025 | Banking & Finance News
In a major move aimed at enhancing financial inclusion and providing greater flexibility to account holders, Canara Bank has officially waived the minimum balance requirement on all savings bank accounts. The announcement comes as part of the bank’s broader strategy to offer more customer-centric services and simplify banking operations.
Key Highlights
✅ No minimum average balance (MAB) requirement for savings accounts
✅ Applicable to new and existing customers across all branches
✅ Move aligns with the bank’s mission to increase accessibility and encourage digital banking adoption
What This Means for Customers
This step makes Canara Bank savings accounts completely zero-balance, allowing customers to operate their accounts without the worry of penalty charges. It is expected to benefit students, low-income groups, senior citizens, and rural account holders the most.
“This customer-friendly measure will help foster inclusive banking and empower millions who depend on savings accounts for day-to-day transactions,” said a Canara Bank official in a press release.
Why This Move Matters
Customer Relief: Previously, customers had to maintain a certain minimum balance, failing which they were subject to non-maintenance charges.
Inclusive Banking: This aligns with the government's push for wider financial literacy and participation.
Competitive Advantage: With many private banks still charging for non-maintenance, Canara Bank could attract more customers, especially from the low-income and student segments.
Enhanced Digital Penetration: By removing financial barriers, more users may shift to digital and mobile banking services.
Comparison with Other Banks (June 2025)
| Bank | Minimum Balance | Penalty for Non-maintenance |
|---|---|---|
| Canara Bank | ₹0 | ₹0 |
| SBI | ₹0 | ₹0 |
| HDFC Bank | ₹10,000 (urban) | Up to ₹600/month |
| ICICI Bank | ₹10,000 (urban) | Up to ₹500/month |
| Axis Bank | ₹12,000 (metro) | Up to ₹600/month |
FAQs: Canara Bank Minimum Balance Waiver
Q1. What is the latest change in Canara Bank’s savings account policy?
A: Canara Bank has eliminated the minimum balance requirement for all savings accounts.
Q2. Is this waiver applicable to all account types?
A: Yes, it applies to all regular savings accounts, whether new or existing.
Q3. Will I be charged any penalty if I don’t maintain a balance?
A: No, there are no penalties or charges for non-maintenance of balance anymore.
Q4. How does this benefit customers?
A: It allows more flexible banking, particularly for low-income groups, students, and rural users who previously struggled with MAB requirements.
Q5. Do I need to visit the branch to avail this benefit?
A: No action is needed. The change is automatically applied to all savings accounts.
Q6. Does this affect interest rates on savings accounts?
A: No. Interest rates remain unchanged and will continue to be credited as per existing terms.
Conclusion
Canara Bank’s decision to waive the minimum balance requirement is a welcome step that enhances customer convenience, financial inclusivity, and positions the bank as a more accessible and progressive financial institution. As banking evolves, such moves are crucial to retain customer trust and expand reach in underserved regions.
Reported by Benny on June 1, 2025.