In a major customer-centric move, Canara Bank has officially waived off the requirement of maintaining Average Monthly Balance (AMB) across all types of savings bank accounts, including regular savings, salary accounts, and NRI accounts. The new rule is effective from today, June 1, 2025.
This means no penalty will be charged for not maintaining a minimum balance in any Canara Bank savings account—a step aimed at offering true zero balance accounts to all its customers.
Relief for Millions of Customers
Previously, customers were required to maintain an AMB ranging from ₹500 to ₹2,000 depending on their branch location:
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Urban/Metro Branches: ₹2,000
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Semi-Urban Branches: ₹1,000
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Rural Branches: ₹500
Penalties ranged from ₹25 to ₹45 + GST based on how much the AMB fell short.
Following SBI’s Footsteps
Canara Bank’s move follows State Bank of India’s (SBI) 2020 decision to scrap minimum balance requirements across all savings accounts. This puts Canara Bank among a small but growing list of public sector banks simplifying account maintenance rules.
Canara Bank Savings Account Interest Rates (As of May 19, 2025)
| Savings Balance Slab | Interest Rate (p.a.) |
|---|---|
| Less than ₹50 Lakh | 2.70% |
| ₹50 Lakh to < ₹5 Cr | 2.75% |
| ₹5 Cr to < ₹10 Cr | 2.80% |
| ₹10 Cr to < ₹100 Cr | 3.05% |
| ₹100 Cr to < ₹200 Cr | 3.50% |
| ₹200 Cr to < ₹300 Cr | 3.10% |
| ₹300 Cr to < ₹500 Cr | 3.10% |
| ₹500 Cr to < ₹1000 Cr | 3.40% |
| ₹1000 Cr to < ₹2000 Cr | 3.55% |
| ₹2000 Cr and above | 4.00% |
What Is AMB and Why It Matters
The Average Monthly Balance (AMB) is the average amount a customer is expected to maintain in their account over a month. Falling below this benchmark previously invited monthly penalties. The waiver now removes a major financial barrier, especially for small account holders.
