In a significant step towards financial inclusion, several major public sector banks in India have removed the requirement to maintain an Average Monthly Balance (AMB) in savings accounts.

This change, effective from July 2025 in most banks, aims to benefit low-income individuals, farmers, women, and first-time account holders by eliminating penalties associated with low balances.

Key Points:

• Bank of Baroda and Punjab National Bank removed AMB requirements from July 1, 2025, for standard savings accounts.
• Indian Bank fully waived the minimum balance rule for all savings accounts effective July 7, 2025.
• Canara Bank had already implemented this move in May 2025, covering all savings account types, including salary and NRI accounts.
• State Bank of India was the first to eliminate the minimum balance rule back in 2020, setting a precedent for other banks.
• The move is expected to promote financial inclusion, particularly aiding women, rural households, students, and economically weaker sections.