Government Canara Bank owned by its customers has given great relief. The Canara Bank has completely eliminated the need to keep the minimum average monthly balance (Amb) in all types of savings accounts. Now you also keep any penalty on your savings account, salary account or ARI account than the average monthly balance, even then you will not have any penalty. From 1 June 2025, Canara Bank has implemented this new rule.
What is minimum average monthly balance?
The minimum average monthly balance is the lowest amount that is necessary to maintain the entire month to avoid penalty. Banks decide the minimum average monthly balance based on the type of customer account and the location of the branch. Earlier, customers of Canara Bank were required to maintain minimum average monthly balance depending on their type of their account type. Failure to maintain a minimum average monthly balance was fined.
Millions of customers will benefit
The bank said in a statement, “With this new policy, all Canara Bank’s savings account holders will now be able to enjoy the penalty free of the remaining amount in their account. That is, they will no longer need to maintain a minimum average monthly balance to avoid penalty.” With this policy, Canara Bank aims to benefit millions of customers, including salaried individuals, senior citizens, students, NRIs and first time users of banking services.
How was the bank’s result
Canara Bank released its result last month. The bank has registered an increase of 33.15 percent year-on-year (YOY) in its standalone net profit for the quarter ended March 31, 2025, which was ₹ 5,002.66 crore. The net profit of the bank for the January to March quarter in 2024 was ₹ 3,757.23 crore. The bank’s total interest income for the quarter ended March 31, 2025 was ₹ 31,002.04 crore, which was 7.62 percent more YOY more than ₹ 28,807.35 crore.
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