News

Indian Bank and PNB Waive Off Minimum Balance Charges.

Banking & Finance | Dated: 08 Jul 2025

Indian Bank announced on July 3, 2025, that it will completely waive charges for non-maintenance of Minimum Average Balance (MAB) across all Savings Bank accounts, effective July 7, 2025. This marks a crucial move toward increasing account affordability and promoting financial inclusion for diverse customer segments, including students, senior citizens, and the underbanked.

🎯 Key Highlights:

- At the same time, Punjab National Bank (PNB) removed penalties for not maintaining MAB in savings accounts effective July 1, 2025, targeting relief for women, farmers, and low-income households. This policy aligns with recent measures by SBI and Canara Bank, furthering access to banking services nationwide.
- These reforms come against the backdrop of the Reserve Bank of India's rate cuts and broader regulatory objectives to reduce barriers to formal banking. By eliminating MAB fees, Indian Bank and PNB aim to encourage formal account usage and reduce the risk of dormant accounts.

💡 Other Important Facts:

(i) In addition to the MAB waiver, Indian Bank also reduced its one-year Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points to 9.00%, effective July 3, 2025, to make borrowing more affordable. PNB similarly cut savings interest rates by 20 bps.
(ii) Overall, this synchronized effort by major public sector banks—SBI, PNB, Indian Bank, Canara Bank—represents a decisive push toward inclusive, customer-first banking. With simultaneous fee waivers and rate cuts, the banks are strengthening India’s financial inclusion strategy while adapting to evolving customer expectations and competitive dynamics.

📚 Test Your Knowledge:

Recently, which two public sector banks waived off charges for non-maintenance of Minimum Average Balance (MAB) in savings accounts?

Correct Answer: PNB and Indian Bank

🚀 Quick Recap:

About Indian Bank

MD & CEO : Shri Binod Kumar
Headquarters: Chennai