Average Minimum Balance Charges: State Bank of India (SBI) has eliminated the charges levied on the average monthly balance, a practice that had been in place since 2020. Now, no fees will be charged for not maintaining the minimum balance in savings accounts.
This is welcome news for millions of people who use banking services. Now, even if you don't maintain the minimum balance in your savings account, you won't have to pay any penalty. Six major public sector banks in the country have announced the complete elimination of the Average Monthly Balance (AMB) charge. This includes the State Bank of India (SBI), the largest public sector bank in India.
What is the Average Monthly Balance Charge?
Banks require their customers to maintain a certain minimum balance in their savings accounts each month. This is known as the Average Monthly Balance. If customers fail to meet this requirement, banks deduct some money from their accounts as a penalty. However, a major change has been made to this rule.
Banks that Have Removed the Charge
1. State Bank of India (SBI)
SBI, the largest bank in the country, started levying the Average Minimum Balance charge from 2020. But now, the bank has completely eliminated this charge. Now, no amount will be deducted even if the account holder does not maintain the minimum balance in their account.
2. Bank of Baroda (BOB)
Bank of Baroda has announced the removal of minimum balance charges on all standard savings accounts from July 1, 2025. However, this charge will still apply to premium savings accounts. The bank said that this step has been taken keeping in mind the convenience of the customers.
3. Canara Bank
Canara Bank has eliminated the minimum balance charge on all its savings accounts, such as regular savings, salary accounts, and NRI savings, from May 2025. This change is especially beneficial for those customers who often fail to maintain the minimum balance in their accounts.
4. Punjab National Bank (PNB)
PNB has also provided significant relief to all its account holders by completely eliminating the minimum average balance charge. According to the bank, this decision was taken with the aim of maintaining the better financial condition of the customers.
5. Indian Bank
Indian Bank has announced the removal of minimum balance charges on all types of savings accounts from July 7, 2025. Now, customers of this bank can operate their accounts without any fees, regardless of the balance they hold.
6. Bank of India (BOI)
Bank of India has also announced the elimination of the minimum balance charge for its customers. The bank said in a press release that this decision was taken keeping in mind the changing market environment and the financial situation of the customers.
What is the Purpose of the Change?
The main objective of this decision taken by the banks is to reduce the unnecessary financial burden on customers and promote financial inclusion. This will particularly benefit people living in small towns and rural areas who are unable to maintain the minimum balance.
What Has Changed for Customers?
Earlier, customers were required to maintain an average balance of ₹1,000 to ₹5,000 per month, but now this requirement has been removed. This will provide relief to millions of account holders, especially those who temporarily leave their accounts empty or have limited income.
Which Accounts Will Be Excluded from this Decision?
Some banks have limited this facility to only standard savings accounts. This means that the condition of maintaining a minimum balance may still apply to premium or special savings schemes. Therefore, customers should seek clear information about this from their bank's website or branch.
Impact of this Change on the Banking Sector
Experts believe that this decision has been taken keeping in mind the convenience of the customers. This will improve the brand image of the banks and make it easier to attract new customers. Also, digital banking will be promoted because now people from lower income groups will be able to open accounts without hesitation.
