Key Highlights:
No penalty on not maintaining minimum balance in savings accounts from July 1, 2025.
Beneficial for low-income groups, women, farmers, and rural citizens.
Move supports financial inclusion and government digital schemes.
Mumbai: Punjab National Bank (PNB), one of India’s largest public sector banks, has given a major relief to its savings account holders. From July 1, 2025, customers will no longer be charged a penalty for not maintaining a Minimum Average Balance (MAB) in their savings account.
This step removes a big worry for many customers who had to keep checking their balance every month to avoid charges.
Big Help for Common People
This new rule will help especially those from low-income groups, such as women, farmers, and people living in rural areas. These groups often face difficulty maintaining a minimum balance due to irregular income or limited earnings.
Now, they can use banking services without worrying about extra charges.
PNB’s Statement on the Decision
PNB’s Managing Director and CEO, Ashok Chandra, said this step shows the bank’s commitment to inclusive banking. He added, “We want everyone to access banking services without financial stress. Removing the penalty will build trust and increase participation in the banking system.”
This decision comes at a time when the government is focusing on financial inclusion, aiming to bring more people, especially in rural India, into formal banking.
A Step Towards Social Responsibility
PNB’s move is more than just a policy change — it’s a step toward social responsibility. Many people were afraid to open bank accounts because of penalty charges. Now, they can open accounts freely and use digital banking services.
This will also support government missions like Digital India, Jan Dhan Yojana, and other schemes by encouraging more people to join the formal financial system.
