Canara Bank’s New Rule from June 1: Public sector bank Canara Bank has brought good news for its customers starting June 1.
The bank has announced that it will no longer require customers to maintain an Average Monthly Balance (AMB) in any type of savings account.
This means that even if there is less than the minimum required balance in a savings account, no penalty will be charged.
This rule applies to all types of savings accounts, including salary accounts, NRI savings accounts, and others.
The bank issued a statement confirming that this rule is effective from June 1, 2025. From now on, no Canara Bank savings account holder will face a fine for not keeping a minimum balance.
Earlier, customers had to maintain a certain average monthly balance based on their account type, failing which they were fined.
Earlier Penalty Details:
Previously, customers had to maintain a minimum monthly balance of ₹2,000 in urban branches, ₹1,000 in semi-urban branches, and ₹500 in rural branches.
If they failed to do so, a penalty was imposed. The new rule is expected to benefit millions of customers, including salaried people, senior citizens, students, NRIs, and those new to banking.
Canara Bank is now the first major public sector bank in India to remove penalties for not maintaining a minimum balance.
Currently, the interest rate on domestic/NRO/NRE savings accounts at Canara Bank ranges between 2.70% and 4% per year.
Profit in March Quarter:
Canara Bank’s consolidated net profit rose by 28% to ₹5,070 crore in the January–March quarter. However, net interest income dropped by 1.44% to ₹9,442 crore.
The net interest margin also decreased by 0.25% to 2.80%. For the financial year 2025, the bank’s profit increased to ₹17,540 crore.
