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Indian Bank will waive minimum balance charges for all Savings Bank accounts from July 7, 2025, to promote financial inclusion.
Indian Bank removes MAB charges from July 07.
Indian Bank has announced the complete waiver of minimum balance charges across all Savings Bank accounts, effective July 7, 2025. This move is aimed at fostering financial inclusion and making banking more accessible and affordable for all sections of society. The bank’s waiver announcement followed by Canara Bank and Punjab National Bank which also removed the MAB penalty.
This landmark move is set to benefit a vast spectrum of Indian Bank account holders, ranging from students and senior citizens to small business owners and rural customers. The waiver is expected to encourage more individuals, especially those from underserved communities, to enter the formal banking system.
Further reinforcing its commitment to affordable credit, the Bank has also announced a reduction of 5 basis points in its one-year Marginal Cost of Funds Based Lending Rate (MCLR), bringing it down to 9.00%, effective July 3, 2025. This reduction will directly benefit borrowers with lower interest rate on loan.
Punjab National Bank (PNB) earlier announced the removal of penalty charges for not maintaining the minimum average balance (MAB) in all savings accounts from July 01, 2025. PNB was the second PSU lender after Canara Bank to remove penalty charges for not maintaining the minimum average balance (MAB) in all savings accounts.
MAB is the average amount a bank requires you to maintain in your savings account over a specific period—usually monthly.
Canara Bank Waives Off Penalty In Savings Account
Canara Bank brought significant relief to its savings account holders by eliminating the average monthly balance (AMB) requirement for all types of savings bank accounts.
With this decision, Canara Bank becomes the first major public sector bank to abolish AMB-related penalties.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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