Canara Bank waives the AMB requirement for all savings bank accounts
Banking and Finance
3 min read
The Government of India-owned Canara Bank has become the latest public sector bank to waive the average monthly balance (AMB) requirement for all savings bank accounts.
Starting 1 June 2025, the bank will not charge its customers for non-maintenance of the average monthly balance in their savings accounts.
A minimum average monthly balance is the lowest amount a customer must keep in their savings account every month. Banks can levy penalties if the customer fails to maintain the required average monthly balance.
The amount of penalties differs from bank to bank.
India’s largest bank, the State Bank of India, has also waived minimum balance requirement charges since 11 March 2020.
RBI rules on penalty for non-maintenance of AMB
The Reserve Bank of India (RBI) has allowed banks to fix the minimum balance requirement for savings accounts..
The bank can impose a penalty on the customer for non-maintenance of the average balance per the bank’s board policy.
However, according to the RBI, the charges shall be reasonable.
The bank cannot fix any minimum balance requirement for savings accounts opened under the Basic Savings Bank Deposit Accounts (BSBDA).
Also, under the Pradhan Mantri Jan Dhan Yojana (PMJDY), savings accounts do not require a minimum balance.
The accounts opened under PMJDY are called Jan Dhan accounts.
The Jan Dhan Account is a BSBDA account with extra facilities of Rs 2 lakh accidental insurance (accounts opened after 28 August 2018), life insurance cover of Rs 30,000 (accounts opened between 15 August 2014 and 31 January 2015), and an overdraft facility of Rs 10,000 for eligible customers.
About Canara Bank
Entrepreneur Ammembal Subba Rao Pai founded the Canara Bank.
It started its banking operation as a private bank in July 1906 at Mangalore.
Canara Bank was one of the 14 private banks that were nationalised by the government of India in 1969.
Syndicate Bank merged with Canara Bank on 1 April 2020.
Managing Director (MD) and Chief Executive Officer (CEO)- K Satnarayana Raju
Headquarters - Bengaluru
Tagline - Together we can
