Has Canara Bank Eliminated Minimum Balance Requirements for Savings Accounts?
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Synopsis
Exciting news for Canara Bank customers! The bank has eliminated the minimum balance requirement for all savings accounts, allowing account holders to maintain a zero balance without penalties. This customer-friendly move is set to benefit millions, making banking more accessible and freeing up funds for transactions.
Key Takeaways
- Canara Bank has abolished minimum balance penalties for savings accounts.
- Account holders can now maintain a zero balance.
- This policy applies to all savings account types.
- It aims to benefit millions of customers.
- Canara Bank is a major player in the Indian banking sector.
New Delhi, June 1 (NationPress) - In a significant and customer-centric initiative, Canara Bank has officially abolished the penalties associated with not maintaining a minimum balance in savings accounts effective from June 1.
With this new policy, customers with any type of savings account at Canara Bank will no longer face charges or penalties for not maintaining a minimum balance. This rule applies to all categories of savings accounts.
By implementing this change, Canara Bank becomes the first major public sector bank in India to remove the minimum balance requirement entirely.
Account holders can now maintain a zero balance in their savings accounts without incurring any fees.
This change is anticipated to benefit millions of savings account holders, allowing them to use their entire account balance freely for transactions without the fear of penalties.
"From June 1, 2025, Canara Bank will not impose any penalties for the non-maintenance of minimum balance. This policy is applicable to all savings account holders," the bank stated on the social media platform X.
“With this new regulation, all Canara Bank savings account holders can now truly enjoy a 'no penalty on minimum balance' policy for all savings accounts, free from any average monthly balance-related fees or penalties,” the bank added.
Previously, customers were required to maintain a minimum balance of Rs 2,000 in urban areas, Rs 1,000 in semi-urban areas, and Rs 500 in rural regions. Failure to meet these criteria would lead to penalties.
This change is expected to benefit a diverse array of customers, including students, women, senior citizens, and individuals from lower-income groups.
Canara Bank stands as one of India’s largest public sector banks. In the March quarter (Q4) of FY25, the bank reported an income of Rs 31,496 crore and a profit of Rs 5,111 crore.
For the entire financial year, the bank’s total income reached Rs 1.21 lakh crore in FY25, with a net profit of Rs 17,692 crore.
Point of View
Canara Bank's decision to eliminate minimum balance requirements is a commendable move that aligns with the needs of modern customers. This policy change promotes financial inclusivity and provides relief to a diverse customer base, reinforcing the bank's commitment to serving the nation's banking needs effectively.
NationPress
22/07/2025
Frequently Asked Questions
What is the new policy for savings accounts at Canara Bank?
Canara Bank has removed the minimum balance requirement for all savings accounts, allowing customers to maintain a zero balance without incurring penalties.
When did this policy take effect?
The new policy took effect on June 1, 2025.
Who benefits from this policy change?
This policy benefits millions, including students, women, senior citizens, and low-income individuals.
Was there a minimum balance requirement before?
Yes, previously, customers were required to maintain varying minimum balances based on their location.
Is Canara Bank the first bank to make this change?
Yes, Canara Bank is the first major public sector bank in India to eliminate the minimum balance requirement.
