Union Bank of India: Union Bank has given a big relief to its customers. The bank has announced the abolition of the penalty on minimum balance in savings account. This decision will be effective from the quarter ending September 2025.
Union Bank of India Minimum Balance: If you have a savings account in Union Bank of India, then a very big relief news has come for you. Union Bank has announced to abolish the penalty for not maintaining minimum balance in its savings account. According to the press release of the bank, this decision will come into effect from the quarter ending in September 2025. Earlier, many big government banks of the country have abolished the charge for not maintaining minimum balance in savings account.
Union Bank said that this decision will give more and more people an opportunity to connect with banking services. After this decision, now the general savings account holders of the bank will not have to pay any kind of charge for not maintaining minimum balance. The bank believes that this decision will help in making banking services accessible to more and more people and increasing economic equality. However, the bank has clarified that this exemption will not apply to all savings accounts. If your account is part of a special or customized savings account product, then this exemption will not be available there.
These banks removed penalty on minimum balance
State Bank of India (SBI)
State Bank of India (SBI) had already removed the minimum balance requirement from all its savings accounts in 2020. Under this policy, customers no longer have to face any penalty for falling short of balance.
Canara Bank
Canara Bank also announced the removal of the average monthly balance requirement for all its types of savings accounts, such as regular savings accounts, salary accounts and NRI savings accounts, in May 2025. This initiative has further increased the popularity of the bank among customers, as they now have the freedom to use their account without worrying about the minimum balance.
Union Bank made a big announcement, now there will be no penalty on minimum balance
Bank of Baroda
Bank of Baroda has also removed the charge for not maintaining minimum balance on all its standard savings accounts from July 1, 2025. However, keep in mind that this exemption will not apply to premium savings account schemes.
Indian Bank
Indian Bank has also completely abolished the minimum balance charge on all savings accounts. This facility has come into effect from July 7, 2025.
What is Minimum Average Balance?
Minimum Average Balance (MAB) is the average amount that should be in your bank account every month. In simple words, the bank wants that there should always be some money in your account so that the account continues to run and it becomes easier for the bank to maintain it. The hassle of maintaining minimum balance will end. Direct benefit to rural and low income group customers. More control and flexibility on savings. Digital transactions will be encouraged.
