In a significant customer-centric move, Canara Bank has announced the complete removal of penalties for non-maintenance of minimum balance across all savings accounts, effective June 1, 2025. With this policy update, all savings account holders, regardless of account type or location, can now maintain zero balance without incurring any charges. This initiative positions Canara Bank as the first major public sector bank in India to introduce a truly zero-balance savings account policy across the board.
“From June 1, 2025, Canara Bank will not impose any penalty for non-maintenance of minimum balance. This applies to all savings account holders,” the bank declared via an official post on X (formerly Twitter).
Previously, customers were required to maintain a minimum balance of ₹2,000 in urban areas, ₹1,000 in semi-urban regions, and ₹500 in rural areas, with non-compliance resulting in penalties.
The elimination of these requirements is expected to benefit millions, particularly students, senior citizens, women, and individuals from economically weaker sections, offering them greater financial flexibility and inclusion.
Canara Bank emphasized that the new policy underscores its commitment to customer empowerment, providing account holders the freedom to fully utilize their funds without the burden of minimum balance rules or hidden fees. This strategic step aligns with the bank’s broader vision to enhance customer experience and financial inclusion, especially in underserved areas.
Strong Financial Performance
Canara Bank’s move comes on the heels of a robust financial year. In Q4 of FY25, the bank reported a total income of ₹31,496 crore and a net profit of ₹5,111 crore. For the entire fiscal year, total income reached ₹1.21 lakh crore, with a net profit of ₹17,692 crore, solidifying its position among India’s leading public sector banks.
