• Source:JND
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Public sector lender Canara Bank has completely removed the requirement to maintain an average monthly balance (AMB) across all types of savings accounts from June 1, 2025. Hence, customers will no longer be penalised for failing to maintain the minimum balance in their accounts.

The change will affect all savings options, including salary accounts, NRI savings accounts, general savings accounts and more. With this, Canara Bank has become the first public sector bank in India to implement a policy of no penalty for not maintaining minimum balances.

What's New?

Earlier, customers had to maintain a minimum AMB depending on the branch location till last month, i.e. May 2025. For urban branches, the AMB was Rs 2,000, for semi-urban branches it was Rs 1,000 and for rural branches it was Rs 500.

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Penalties were imposed for failing to maintain this balance. No such penalties will be applied starting on June 1st, providing much-needed relief and flexibility, particularly to students, salaried individuals, senior citizens, non-resident individuals, and first-time bank customers.

Interest rates and earnings

Canara Bank currently offers domestic, NRO, and NRE savings accounts with interest rates ranging from 2.70 per cent to 4 per cent annually.

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In terms of finances, the bank announced that its consolidated net profit for the January–March quarter increased by 28% to Rs 5,070 crore. However, the net interest margin fell to 2.80%, and net interest income decreased marginally by 1.44% to Rs 9,442 crore. The bank reported a net profit of Rs 17,540 crore for FY25.