Indian Overseas Bank (IOB) has announced major relief for customers nationwide. The bank has completely waived penalty charges for not maintaining the Minimum Average Balance (MAB) in savings accounts under the public scheme, effective immediately.
Earlier, this waiver applied only to special accounts like IOB Sixty Plus, Pensioner Accounts, Salary Packages, and Small Accounts, but now it has been extended to all regular savings accounts.
Why This Matters
Bank CEO Ajay Kumar Srivastava said this step will reduce financial pressure on customers and make banking easier for everyone.
This change will particularly help those who, due to financial constraints or oversight, could not maintain minimum balance and were previously charged penalties. Small account holders and pensioners will benefit the most.
Previous Rules and Transition
All charges under the old rules (valid until September 30, 2025) remain applicable. After this period, the new waiver benefits will apply automatically, ensuring no penalty for zero or low balances.
Promoting Financial Inclusion
This initiative highlights IOB’s commitment to financial inclusion and customer-friendly services. By simplifying banking, the bank aims to provide relief, especially to customers with small or irregular banking needs.
Customer Awareness
IOB will continuously inform customers through digital and greeting platforms so they can easily avail the benefits.
This move brings hope for further improvements in India’s banking sector, particularly for those unable to maintain a minimum balance.
