Banking: No penalty will be levied even if your account balance is zero in these 8 banks..

Minimum balance waiver banks: There's news of great relief for millions of customers holding savings accounts in India. For a long time, people were burdened by the pressure and penalties associated with maintaining a minimum balance, but now several major banks have abolished this requirement. According to the latest information, a total of eight major public sector banks have completely removed the requirement to maintain a minimum balance on savings accounts. This means that no matter how much money you keep in your account or whether you keep it at all, you won't be charged any fees.

Which banks are included?

The banks that have waived this requirement so far include State Bank of India (SBI), Union Bank of India, Bank of Baroda, Indian Bank, Canara Bank, Punjab National Bank (PNB), Bank of India, and now Indian Overseas Bank (IOB).

1. Indian Overseas Bank (IOB)
The latest addition is the Indian Overseas Bank. IOB announced on September 30, 2025, that the minimum balance requirement will be completely removed from SB-Public accounts from October 1, 2025. However, this feature will not be available for premium accounts (such as HNI, Prime, Privilege, etc.).

2. Bank of Baroda
Bank of Baroda has removed this requirement for all standard savings accounts from July 1, 2025. However, this exemption does not apply to premium savings schemes.

3. Indian Bank
Indian Bank has completely removed the minimum balance charge for all its savings accounts from July 7, 2025. Now, customers will no longer have to worry about a lack of balance.

4. Canara Bank
Canara Bank had already announced in May 2025 that the AMB rule would no longer apply to all its accounts, whether regular, salary, or NRI accounts.

5. Punjab National Bank (PNB)
PNB has also recently provided significant relief to its customers. Now, there will be no penalty for not maintaining a minimum balance on any savings account.

6. State Bank of India (SBI)
SBI made this significant change in 2020. As the country's largest bank, this move proved to be a relief for millions of customers.

7. Bank of India
Bank of India has also eliminated the penalty for not maintaining a minimum balance. The bank stated that this step was taken in the best interests of customers and the changing financial environment.

8. Union Bank of India
Union Bank recently removed the minimum balance requirement on all its general savings accounts. This rule came into effect from the September 2025 quarter.

What is Minimum Balance?
Banks require their customers to maintain a certain amount in their savings accounts. This is called the Minimum Balance. This amount can vary from bank to bank. If the account holder fails to maintain this amount, the bank imposes a penalty.

How is the Minimum Balance Calculated?
Many people believe that maintaining a fixed amount daily is mandatory, but this is not the case. Banks calculate this based on the Monthly Average Balance (AMB). For example, if the bank has set a minimum balance of ₹10,000, the average monthly balance must be at least ₹10,000. This means that if you deposit ₹3 lakh into your account on the first of the month and the balance remains zero on the remaining days, your average will still be above ₹10,000, and no penalty will be imposed.

Can an account go negative?
No. The Reserve Bank of India (RBI) has clearly instructed banks not to allow accounts to go negative. Therefore, even if the balance is zero, the bank will not make your account negative.

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