No Penalty for Low Balance. Until now, the rule at every bank was that if you didn’t maintain a certain amount of money in your account each month, you would be charged for it. But now, a public sector bank is set to provide major relief in this regard.

You will no longer be charged even if you don’t maintain a minimum balance in your bank account. Canara Bank has announced that it’s no longer necessary to fulfill the minimum balance requirement for savings accounts.

Minimum Balance Rule Ends

No Penalty for Low Balance. Canara Bank stated in its announcement, “The bank will no longer charge customers for not maintaining a minimum balance in their accounts, which includes savings accounts, NRI savings accounts, and salary accounts.” The bank’s statement confirmed this change took effect on June 1, 2025. Previously, banks would deduct charges if a specific minimum balance wasn’t maintained in the account over a month.

Canara Bank has currently implemented this rule, and it’s expected that this initiative will bring relief to many people. A lot of customers can’t meet the minimum balance condition, which leads to them being charged every month.

Different Banks, Different Charges

No Penalty for Low Balance. Currently, every bank has different minimum balance rules for customers in urban, semi-urban, or rural areas. Banks change these rules periodically. Therefore, it’s important for you to regularly check the rules of the bank where you hold an account. If you don’t maintain the minimum balance, some banks might restrict facilities like checkbooks or net banking.