SBI, BOB, PNB, other banks announce new changes in saving accounts; customers will no longer be required to...; know details

In a big relief to customers, some major publicly listed Indian banks have eliminated the compulsory requirement of keeping Average Monthly Balance (AMB) in the savings accounts. Some of these banks are: State Bank of India, Canara Bank, Bank of India and others. These banks will no longer follow the policy of keeping a minimum balance in most of their savings accounts. 

Why banks keep Average Monthly Balance? 

Banks keep an Average Monthly Balance which is the average balance that customers are required to maintain in their savings or current account each month. When the month comes to an end, the bank calculates this balance and any lapse in the amount leads to penalties which differs based on the type of savings account. 

Banks that have removed AMB requirement 

Bank of Baroda 

Bank of Baroda has exempted charges on non-maintenance of minimum balance in their standard savings accounts from July 1, 2025. But this exemption is not applicable to Premium Savings Account schemes. 

State Bank of India 

State Bank of India was the first to take the move and waived the average minimum balance requirements in 2020. In a recent interview, SBI Chairman CS Setty revealed that this policy has benefited first-time account holders. 

Canara Bank 

Canara Bank also exempted the AMB requirement in May this year for all savings bank accounts, like regular savings accounts, salary accounts and NRI savings accounts. 

Indian Bank 

As recent as July 7, 2025, Indian Bank has also entered the list of banks that will no longer put restriction on AMB. The bank announced a full waiver of minimum balance in all kinds of savings bank accounts. 

Punjab National Bank 

The Punjab National Bank (PNB) has also announced levying no fines for lapses in maintaining the AMB in savings accounts, in a move to ease banking and include more financial opportunities. “This customer-first initiative, effective from July 1, 2025, is particularly aimed at supporting priority segments such as women, farmers and low-income households, ensuring easier and more inclusive access to banking services without the stress of balance maintenance penalties,” the bank said in a press release. 

Bank of India 

Bank of India has also exempted the minimum-balance requirement on savings accounts by lifting off punishments.  

These changes are intended to reflect market trends, improve financial adaptability, and provide increased value to customers across various segments.