Canara Bank scraps AMB requirement for savings accounts | Fusion - WeRIndia

Canara Bank scraps AMB requirement for savings accounts

Canara Bank scraps minimum balance requirement for all savings accounts

In a significant customer-friendly move, Canara Bank has removed the average monthly balance (AMB) requirement for all savings bank accounts, effective June 1, 2025.

With this, it becomes the first major public sector bank to abolish AMB-related penalty charges entirely, offering a true zero-balance savings account experience to its customers.

The waiver will apply to the following accounts:

  • Regular savings accounts
  • Salary accounts
  • NRI savings bank accounts

This progressive move by Canara Bank aims to enhance financial inclusion by simplifying access for students, salaried individuals, senior citizens, NRIs, and new banking users.


By removing the need to maintain a minimum balance, the bank eliminates penalties and hidden charges.

This ensures that all customers can use banking services freely and confidently, making everyday banking more accessible, convenient, and inclusive for a broader section of society.

Previously, Canara Bank mandated specific AMB levels depending on the branch location:

  • ₹2,000 for Metro/Urban branches
  • ₹1,000 for Semi-Urban branches
  • ₹500 for Rural branches

Customers who failed to meet these limits were charged penalties:

For Urban/Metro branches:

  • ₹25 + GST for AMB ₹1,500–1,999
  • ₹35 + GST for AMB ₹1,000–1,499
  • ₹45 + GST for AMB below ₹1,000

For Semi-Urban branches:

  • ₹25 + GST for AMB ₹700–999
  • ₹35 + GST for AMB ₹400–699
  • ₹45 + GST for AMB below ₹400

These charges often placed a burden on low-income and rural account holders. By eliminating the AMB requirement, Canara Bank guarantees that no savings account holder will face penalties for maintaining a low or zero balance.

This landmark decision is set to benefit millions of bank customers across the country.

It reflects the bank’s commitment to inclusive and accessible banking, ensuring that financial services are available without a burden, especially to those in rural areas and low-income groups, thereby promoting greater financial freedom and trust.

Image Credit: Srinibugs, CC BY-SA 4.0, via Wikimedia Commons


Image Reference: https://commons.wikimedia.org/wiki/File:Canara_Bank_Head_Office_Bengaluru.jpg